By Nathalie Tadena
Consolidated Edison Inc.'s (ED) first-quarter earnings fell 31%
as a charge related to a lease-in lease-out transaction weighed on
the utility company's bottom-line results, though revenue
improved.
The utility, which serves the New York metropolitan area, faced
an unprecedented challenge with superstorm Sandy last year. Con
Edison said Thursday it is moving ahead with appropriate
longer-term protective measures as it consults with scientists,
engineers and government officials.
"Con Edison's steady performance and enduring financial
stability permit the immediate initiatives underway to fortify and
harden our system before the next hurricane season," said Chairman
and Chief Executive Kevin Burke, adding that longer-term protective
measures are moving ahead.
In January, the U.S. Court of Appeals reversed a 2009 trial
court decision and disallowed tax losses claimed by the company
relating to a 1997 lease in lease out transaction. As a result, Con
Edison recorded a charge of $150 million in the latest period to
reflect the interest on the disallowed income tax deductions and
the recalculation of the accounting effect of the lease in lease
out transaction.
Overall, Consolidated Edison reported a profit of $192 million,
or 65 cents a share, down from $277 million, or 94 cents a share, a
year earlier. Excluding a charge in the latest period related to
lease in/lease out transactions and mark-to-market effects of the
competitive energy businesses, ConED said earnings from ongoing
operations rose to $1.08 a share from $1.01 a share.
Total operating revenue rose 3.4% to $3.18 billion.
Revenue from the electric business--ConEd's largest top-line
generator by far--rose 5.2%. Gas revenue increased 15%, while steam
revenue was up 26%. Nonutility revenue fell 51%.
Operating expenses increased 5.6%. Net interest expense climbed
86% to $279 million.
Shares of the company, which affirmed its full-year guidance,
were down 10 cents to $63.53 after hours. The stock is up 15% since
the start of the year.
Write to Nathalie Tadena at nathalie.tadena@dowjones.com
Order free Annual Report for Consolidated Edison, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US2091151041 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires