Con Edison Reports 2012 Third Quarter Earnings

Con Edison Reports 2012 Third Quarter Earnings 
NEW YORK, NY -- (Marketwire) -- 11/05/12 --  Consolidated Edison,
Inc. (Con Edison) (NYSE: ED) today reported third quarter earnings of
$440 million or $1.50 a share compared with $383 million or $1.31 a
share in 2011. Earnings from ongoing operations, which exclude the
net mark-to-market effects of the competitive energy businesses, were
$423 million or $1.44 a share compared with $390 million or $1.33 a
share in 2011.  
For the first nine months of 2012, net income for common stock was
$931 million or $3.18 a share compared with $860 million or $2.94 a
share in the first nine months of 2011. Earnings from ongoing
operations, which exclude the net mark-to-market effects of the
competitive energy businesses, were $896 million or $3.06 a share in
2012 compared with $846 million or $2.89 a share in 2011.  
"All of Con Edison's resources are concentrated on restoring power to
our customers. Hurricane Sandy's impact on our energy systems has
been massive, but we are gaining ground and have already made
substantial progress returning power to New Yorkers. We will continue
to work around the clock until everyone's lights and heat are back
on," said the company's Chairman, President and Chief Executive
Officer, Kevin Burke.  
The following table is a reconciliation of Con Edison's reported
earnings per share to earnings per share from ongoing operations and
reported net income to earnings from ongoing operations for the three
and nine months ended September 30, 2012 and 2011. 


 
                                                                            
                           Three Months Ended          Nine Months Ended    
                          Earnings     Net Income     Earnings    Net Income
                            per        (Millions        per       (Millions 
                           Share      of Dollars)      Share     of Dollars)
                       -------------  -----------  ------------- -----------
                        2012   2011    2012  2011   2012   2011   2012  2011
                       ------ ------  ----- -----  ------ ------ ----- -----
Reported earnings per                                                       
 share and net income                                                       
 
 for common stock-                                                          
 GAAP basis (basic)    $ 1.50 $ 1.31  $ 440 $ 383  $ 3.18 $ 2.94 $ 931 $ 860
Less: Net mark-to-                                                          
 market effects of                                                          
 competitive energy                                                         
 businesses              0.06  (0.02)    17    (7)   0.12   0.05    35    14
                       ------ ------  ----- -----  ------ ------ ----- -----
Ongoing operations     $ 1.44 $ 1.33  $ 423 $ 390  $ 3.06 $ 2.89 $ 896 $ 846
                       ====== ======  ===== =====  ====== ====== ===== =====

 
For the year 2012, the company reaffirms its previous forecast of
earnings per share from ongoing operations in the range of $3.65 to
$3.85 a share. Earnings per share from ongoing operations exclude the
net mark-to-market effects of the competitive energy businesses. 
The results of operations for the three and nine months ended
September 30, 2012, as compared with the 2011 periods, reflect
changes in the rate plans of Con Edison's utility subsidiaries and
the effects of the milder winter weather on steam revenues. The rate
plans provide for additional revenues to cover expected increases in
certain operations and maintenance expenses and depreciation. The
results of operations include the operating results of the
competitive energy businesses, including net mark-to-market effects.  
Operations and maintenance expenses were higher in the 2012 periods
due primarily to pension costs and the support and maintenance of
company underground facilities to accommodate municipal projects.
Depreciation was higher in the 2012 periods reflecting the impact of
higher utility plant balances.  
The following table presents the estimated effect on earnings per
share and net income for common stock for the 2012 period compared
with the 2011 period, resulting from these and other major factors: 


 
                                                                            
                            Three Months Ended         Nine Months Ended    
                                 Variation                 Variation        
                               2012 vs. 2011             2012 vs. 2011      
                                      Net Income                Net Income  
                                      for Common                for Common  
                                        Stock                     Stock     
                          Earnings    Variation     Earnings    Variation   
                         per Share   (Millions of  per Share   (Millions of 
                         Variation     Dollars)    Variation     Dollars)   
------------------------ ---------  -------------  ---------  ------------- 
Consolidated Edison                                                         
 Company of New York,                                                       
 Inc. (CECONY) (a)                                                          
  Rate plans, primarily                                                     
   to recover increases                                                     
   in certain costs      $    0.24  $          71  $    0.65  $         192 
  Weather impact on                                                         
   steam revenues                -              -      (0.10)           (28)
  Operations and                                                            
   maintenance expense       (0.11)           (31)     (0.33)           (98)
  Depreciation               (0.03)           (10)     (0.09)           (27)
  Other                       0.02              6       0.02              6 
                         ---------  -------------  ---------  ------------- 
Total CECONY                  0.12             36       0.15             45 
Orange and Rockland                                                         
 Utilities (O&R)              0.01              4       0.04             11 
Competitive energy                                                          
 businesses (b)               0.08             21       0.06             19 
Other, including parent                                                     
 company expenses            (0.02)            (4)     (0.01)            (4)
                         ---------  -------------  ---------  ------------- 
Total variation          $    0.19  $          57  $    0.24  $          71 
                         =========  =============  =========  ============= 
                                                                            
(a) Under the revenue decoupling mechanisms in CECONY's electric and gas    
rate plans and the weather-normalization clause applicable to the gas       
business, revenues are generally not affected by changes in delivery volumes
from levels assumed when rates were approved. Under CECONY's rate plans,    
pension and other postretirement costs and certain other costs are          
reconciled to amounts reflected in rates for such costs.                    
(b) For the three months ended September 30, the var
iations reflect after-  
tax net mark-to-market gains of $17 million or $0.06 a share in 2012 and    
after-tax net mark-to-market losses of $7 million or $0.02 in 2011. For the 
nine months ended September 30, the variations reflect after-tax net mark-  
to-market gains of $35 million or $0.12 a share in 2012 and after-tax net   
mark-to-market gains of $14 million or $0.05 a share in 2011.               

 
The weighted average number of common shares was 293 million shares
for the three months ended September 30, 2012 and 2011 and 293
million shares for the nine months ended September 30, 2012 and 2011. 
The changes in the energy delivered by the company's utility
subsidiaries, both for actual amounts and as adjusted primarily for
variations in weather and billing days, for the three and nine months
ended September 30, 2012, as compared with the 2011 period were as
follows (expressed as a percentage of 2011 amounts): 


 
                                        Third Quarter        Nine Months    
                                          Variation           Variation     
                                        2012 vs. 2011       2012 vs. 2011   
                                      Actual   Adjusted   Actual   Adjusted 
                                     --------  --------  --------  -------- 
Con Edison of New York                                                      
  Electric                                1.4       2.0      (0.8)      0.5 
  Firm - Gas                             (0.4)     (1.0)    (12.8)      0.6 
  Steam                                   1.5       1.9     (15.6)     (0.8)
O&R                                                                         
  Electric                               (0.1)      2.7      (0.6)      1.8 
  Firm - Gas                             23.5      (5.3)    (14.5)      0.6 
                                     --------  --------  --------  -------- 

 
Refer to the company's Third Quarter Form 10-Q, which is being filed
with the Securities and Exchange Commission, for the consolidated
balance sheets at September 30, 2012 and December 31, 2011 and the
consolidated income statements for the three and nine months ended
September 30, 2012 and 2011. Additional information related to
utility sales and revenues is available at www.conedison.com (select
"Shareholder Services" and then select "Sales & Revenue Reports"
under "Financial Reports"). 
This press release contains forward-looking statements that reflect
expectations and not facts. Actual results may differ materially from
those expectations because of factors such as those identified in
reports the company has filed with the Securities and Exchange
Commission. 
This press release also contains a financial measure, earnings from
ongoing operations. This non-GAAP measure should not be considered as
an alternative to net income, which is an indicator of operating
performance determined in accordance with GAAP. Management uses this
non-GAAP measure to facilitate the analysis of the company's ongoing
performance as compared to its internal budgets and previously
reported financial results. Management believes that this non-GAAP
measure is also useful and meaningful to investors. 
Consolidated Edison, Inc. is one of the nation's largest
investor-owned energy companies, with approximately $13 billion in
annual revenues and $40 billion in assets. The company provides a
wide range of energy-related products and services to its customers
through the following subsidiaries: Consolidated Edison Company of
New York, Inc., a regulated utility providing electric, gas, and
steam service in New York City and Westchester County, New York;
Orange and Rockland Utilities, Inc., a regulated utility serving
customers in a 1,350 square mile area in southeastern New York state
and adjacent sections of northern New Jersey and northeastern
Pennsylvania; Consolidated Edison Solutions, Inc., a retail energy
supply and services company; Consolidated Edison Energy, Inc., a
wholesale energy supply company; and Consolidated Edison Development,
Inc., a company that participates in infrastructure projects. 
Contact:
Robert McGee
212-460-4111 
 
 
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