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THE WILLIAMS COMPANIES REPORTS THIRD CONSECUTIVE YEAR OF EARNINGS GROWTH

 TULSA, Okla., Feb. 3 /PRNewswire/ -- The Williams Companies Inc. (NYSE: WMB) today reported unaudited 1992 net income of $138.2 million, or $2.72 per share, the third consecutive year of double-digit earnings growth. The year's results are a 26 percent increase over 1991, when the company reported net income of $110 million, or $2.35 per share. Net income in 1991 was a 43 percent increase over 1990, a year 47 percent better than 1989.
 "It's great to continue this pace of earnings improvement during a building year," said Joseph H. Williams, chairman and chief executive officer. "This clearly validates our strategy of expanding the company's earnings base through carefully targeted investment in our core businesses.
 "Our results are even more gratifying because we overcame serious and unexpected setbacks early in 1992 that in years past would have badly damaged our bottom line," he said. "We absorbed these jolts while expanding an asset base that should support improving earnings for the foreseeable future."
 For the fourth quarter of 1992, The Williams Companies reported unaudited net income of $64 million, or $1.28 per share, compared with net income of $47.5 million, or $1.06 per share, during the same period of 1991.
 Williams noted several other accomplishments:
 The company's debt-to-debt plus equity ratio improved, even with a record $586 million in capital spending in 1992, more than 80 percent in natural gas projects.
 A net $660 million was generated in 1992 through issuing debt and common and preferred stock offerings. Land in Florida was sold and, even though the company's debt increased $262 million during the year, strategic financial management enabled the company to keep total interest costs at 1991 levels.
 With a $600 million revolving credit line that is 50 percent larger than 1992's, a solid year-end cash position and $95 million in net proceeds from the Jan. 13 public offering of the Williams Coal Seam Gas Royalty Trust, the company enters 1993 with its more than $600 million capital budget essentially funded.
 Williams Western Group, the focal point of most of this new investment in 1992 and again in 1993, broke natural gas volume records for the third consecutive year while recording its highest operating profit since becoming a part of The Williams Companies nearly a decade ago.
 Fully operational in mid-1992, the Kern River natural gas pipeline -- 50 percent owned by the company -- rapidly filled to capacity, adding an after tax $16.3 million to investing income during the year.
 WilTel, which provides technologically advanced business telecommunications products and services and operates a national digital fiber optic network, reported an operating profit of $31.2 million in 1992, compared with $82.3 million in 1991.
 Although WilTel posted lower operating profit on a year-to-year comparison, the company demonstrated improving performance since mid- 1992. It enhanced and more fully integrated a national switched services network, reorganized its equipment business and streamlined its billing system.
 Along with the higher costs associated with this effort, WilTel's financial performance during the year also was hurt by lower equipment margins and charges related to its entry into the switched services and equipment businesses.
 As anticipated, WilTel built momentum during 1992. Its private line business saw demand for circuits increase 20 percent. Billable calls -- a measure of demand for its new switched service capability -- were up 207 percent over 1991.
 WilTel reported fourth quarter 1992 operating profit of $15.1 million, up from an operating profit of $11.9 million in the third quarter of 1992. In the fourth quarter of 1991, Wiltel reported operating profit of $20.2 million. Revenues were $758 million vs. $623 million in 1991.
 Williams Western Group, which operates a 3,600-mile interstate natural gas pipeline and major gas gathering and processing systems, achieved a record operating profit of $161.3 million in 1992, compared with $116.2 million in 1991.
 The 39 percent improvement in operating profit is largely the result of new capital investments that not only have significantly increased capacity, but boosted the earnings power of existing assets. For example, some 60 percent of Kern River's total 1992 volumes were provided by units of Williams Western, where gathering volumes increased 55 percent, processing volumes jumped 70 percent and mainline throughput rose 2 percent.
 Expansion of Northwest Pipeline's mainline by 433 MMcfd, some 22 percent, is to be in service April 1. Williams Field Services, which has rapidly grown to one of the largest companies in its industry, plans to expand its San Juan Basin facilities further in 1993, from 575 MMcfd to 750 MMcfd. All new capacity is fully supported by long-term contracts.
 Williams Western reported fourth quarter operating profit of $51.3 million, compared with $39.1 million in the same quarter of 1991, a 31 percent increase.
 Williams Natural Gas Company, which operates a 9,300-mile interstate natural gas pipeline system, reported an operating profit of $62 million in 1992, compared with operating profit of $60.4 million in 1991.
 This was achieved in spite of record warm weather in the first quarter of 1992.
 The effects of the early year warm weather were somewhat offset by higher transportation revenue and lower general and administrative expense. In addition, the fourth quarter of 1992 included a gain from the sale of a gathering facility and the reversal of certain loss accruals made in prior years.
 Sales volumes declined 23 percent compared with 1991, reflecting warmer weather. Transportation volumes increased 3 percent due to higher off-system demand.
 In the fourth quarter of 1992, Williams Natural Gas reported operating profit of $40.5 million, compared with $28.5 million in the same quarter of 1991.
 Williams Energy Company, which operates a 540-mile intrastate natural gas pipeline system in Louisiana and markets gas nationwide, reported an operating profit of $.1 million compared with $16.3 million in 1991.
 Although combined sales and transportation volumes were 8 percent higher than in 1991, operating profit declined because sales, transportation and liquids margins plunged.
 Fourth quarter operating loss was $1 million, compared with an operating profit of $6.6 million in 1991's fourth quarter.
 Williams Pipe Line Co., which operates an 8,500-mile interstate petroleum products pipeline system, reported an operating profit of $40.4 million in 1992, compared with $31.1 million in 1991.
 This 30 percent improvement in operating profit was due to a 4 percent increase in barrels shipped, expanded non-tariff business activities and a higher tariff in place the last half of 1992.
 The company's increasing focus on business development in 1992 resulted in a significant increase in revenue from new sources, as well as recapture of a portion of market share that had been lost to competitors.
 In the fourth quarter of 1992, Williams Pipe Line reported an operating profit of $12 million, compared with $9.9 million in the fourth quarter of 1991.
 -0- 2/3/93
 /CONTACT: Jim Gipson, 918-588-2111, (Media); or Linda Lawson, 918-588-2087 (Investor Relations), both of the Williams Companies/
 (WMB)


CO: The Williams Companies Inc. ST: Oklahoma IN: OIL SU: ERN

TM -- SF003 -- 2325 02/03/93 10:58 EST
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Date:Feb 3, 1993
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