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WARM WEATHER IN PROPANE MARKETS DEPRESSES UGI'S FIRST QUARTER EARNINGS

WARM WEATHER IN PROPANE MARKETS DEPRESSES UGI'S FIRST QUARTER EARNINGS
 VALLEY FORGE, Pa., April 28 /PRNewswire/ -- UGI Corp. (NYSE: UGI), a holding company with utility and propane marketing subsidiaries, reported today its net income for the first quarter ended March 31 declined to $26,748,000 from $27,523,000 a year ago, due primarily to the effects of warm weather on propane operations.
 Earnings per share, on 25 percent more average shares outstanding, were 99 cents, vs. $1.26 in last year's first quarter. The per-share results included 4 cents from a reserve revaluation in discontinued operations. The increase in outstanding shares resulted from UGI's issue of an additional 4.6 million common shares in June 1991.
 First quarter operating income declined to $59,864,000 from $62,331,000, while revenues declined to $242,796,000 from $264,295,000.
 James A. Sutton, chairman and chief executive officer, said the effects of unseasonable warm weather across the national markets of UGI's AmeriGas Propane subsidiary more than offset the benefits of colder weather realized in the quarter by the company's Pennsylvania gas and electric utility operations.
 Sutton said the first-quarter weather in propane markets was 16 percent warmer than normal and 5 percent warmer than a year ago. The abnormally warm weather caused both reduced volume and increased competitive pressures on margins. Propane revenues were down 20 percent to $113,837,000 and operating income declined 18 percent to $27,827,000.
 Weather in the gas utility service area was 3 percent warmer than normal in the period and 7 percent colder than a year ago, Sutton said. Gas utility operating income increased 9 percent to $31,362,000, due to higher weather-related sales, partially offset by decreased interruptible margins. Gas utility revenues increased 4 percent to $110,836,000.
 Electric utility operating income in the quarter dropped slightly to $2,631,000 from $2,751,000, Sutton said, as increased operating expenses more than offset the income benefit of colder weather. Electric utility revenues increased 15 percent to $18,123,000.
 Net income for the 12 months ended March 31 declined to $25,532,000 from $27,755,000. Earnings per share, on 25 percent more average shares outstanding, decreased to 93 cents from $1.21. Revenues increased to $687,739,000 from $574,574,000, due primarily to consolidation of the propane operations in November 1990.
 /delval/
 -0- 4/28/92
 /CONTACT: Vince Testa of UGI, 215-337-1000/
 (UGI) CO: UGI Corporation ST: Pennsylvania IN: UTI SU: ERN


MK-JS -- PH033 -- 3967 04/28/92 15:45 EDT
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Publication:PR Newswire
Date:Apr 28, 1992
Words:429
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