DTE Energy (DTE) 8-K Dte Energy Reports Third Quarter Earnings; Comments on 2003 Performance

Exhibit 99.2

DTE ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF OPERATIONS (PRELIMINARY/UNAUDITED)
(in Millions, Except per Share Amounts)

			3 Months - September								9 Months - September
			2003		2002			% Change			2003			2002			% Change
Operating Revenues			$	1,654	$	1,657			—		$	5,349		$	5,025			6	%
Operating Expenses
		Fuel, purchased power and gas		452		501			-10	%		1,758			1,639			7	%
		Operation and maintenance		709		615			15	%		2,197			1,781			23	%
		Depreciation, depletion and amortization		170		204			-17	%		547			573			-5	%
		Taxes other than income		71		87			-18	%		255			261			-2	%
				1,402		1,407			—			4,757			4,254			12	%
Operating Income				252		250			1	%		592			771			-23	%
Other (Income) and Deductions
	Interest expense			130		135			-4	%		395			407			-3	%
		Interest expense from preferred securities of subsidiary		5		—			—			5			—			—
		Preferred stock dividends of subsidiaries		—		6			—			12			19			-37	%
		Interest income		(7)		(9	)		-22	%		(22	)		(20	)		10	%
		Other income		(44)		(4	)		n/m			(75	)		(22	)		n/m
		Other expenses		31		8			n/m			82			31			n/m
				115		136			-15	%		397			415			-4	%
Income Before Income Taxes				137		114			20	%		195			356			-45	%
Income Tax Benefit				(43)		(25	)		-72	%		(56	)		(36	)		-56	%
Income from Continuing Operations				180		139			29	%		251			392			-36	%
Discontinued Operations — ITC
		Income from operations		—		22			—			5			37			n/m
		Gain on sale		(4)		—			—			63			—			—
				(4)		22			n/m			68			37			n/m
Cumulative Effect of Accounting Changes
		Asset retirement obligations		—		—			—			(11	)		—			—
		Energy trading activities		—		—			—			(16	)		—			—
				—		—			—			(27	)		—			n/m
Reported Net Income			$	176	$	161			9	%	$	292		$	429			-32	%
Reported Earnings per Diluted Share			$	1.04	$	0.96			9	%	$	1.73		$	2.62			-34	%
Significant Items Impacting Comparability
Unusual Items
		August 2003 Blackout Costs		0.10		—			—			0.10			—			—
		Loss on Sale of Steam Heating Business		—		—			—			0.08			—			—
		Contribution to DTE Energy Foundation		—		—			—			0.06			—			—
		Disallowance of Gas Costs		—		—			—			0.10			—			—
		Energy Trading Activities (EITF 98-10 flowback)		—		—			—			(0.10	)		—			—
		Effective Tax Rate Adjustment		(0.49)		(0.11	)		n/m			0.42			(0.03	)		n/m
Discontinued Operations
		Income from operations of ITC		—		(0.13	)		—			(0.03	)		(0.23	)		n/m
		Gain on sale of ITC		0.02		—			—			(0.37	)		—			n/m
Cumulative Effect of Accounting Changes
		Asset Retirement Obligations (FAS 143)		—		—			—			0.07			—			n/m
		Energy Trading Activities (EITF 98-10 implementation)		—		—			—			0.09			—			n/m
Operating Earnings per Diluted Share			$	0.67	$	0.72			-7	%	$	2.15		$	2.36			-9	%
Average Common Shares
		Basic		168		167			1	%		168			163			3	%
		Diluted		168		168			—			168			164			2	%
Dividends Declared per Common Share			$	0.515	$	0.515			—		$	1.55		$	1.55			—

The Consolidated Statement of Operations (Preliminary/Unaudited) should be read in conjunction with the Notes to
Consolidated Financial Statements appearing in the Annual Report to Shareholders, 10K and 10Q.

n/m — not meaningful

DTE ENERGY COMPANY AND SUBSIDIARY COMPANIES

Earnings Variance Analysis (Preliminary/Unaudited)

Q3 2002 Reported Earnings per Share							$	0.96
	Adjust for Q3 2002 Quarterly Effective Tax Rate Adjustment							(0.11	)
	Adjust for discontinued operations (ITC)							(0.13	)
Q3 2002 Operating Earnings per Share							$	0.72
Regulated Electric								0.04
	Gross Margin				(0.24	)
		Weather impact (above normal in 2002)	(0.27	)
		Incremental losses to Choice	(0.06	)
		Non-recoverable blackout impact (margin)	(0.06	)
		Power supply rate/mix	0.11
		Territory growth	0.04
	O&M Expense				0.11
		Net storm expense (including insurance)	0.03
		MISO billing adjustment	0.03
		Pensions and benefits	(0.03	)
		Other cost reductions/deferrals/timing	0.08
	Depreciation and Amort — primarily regulatory deferrals				0.15
	Interest & Other				0.02
Regulated Gas								(0.13	)
	O&M Expense				(0.07	)
		Operations, customer service, uncollectables expense & benefits
	Taxes & Other				(0.06	)
Non Regulated								0.04
	Energy Trading and Co-Energy —Gains on storage and transport contracts				0.14
	Coal-Based Fuels —Coke battery earnings in 2002, lower synfuel production				(0.08	)
	Other —Portland pipeline sale, merchant energy				(0.02	)
Q3 2003 Operating Earnings per Share							$	0.67
	Non-recurring direct costs of blackout							(0.10	)
	Quarterly effective tax rate adjustment							0.49
	Adjustment for discontinued operations							(0.02	)
Q3 2003 Reported Earnings per Share							$	1.04

Net Income Summary
(Preliminary/Unaudited)

(in millions, except per share amounts)				Reported						Operating			Operating
				Q3 2003			Adjustments			Q3 2003			Q3 2002			Variance
Energy Resources
	Regulated — Power Generation			$	61		$	16	A	$	77		$	54		$	23
	Non-Regulated
	Energy Services
			Coal Based Fuels		27			—			27			39			(12	)
			On Site Energy Projects		2			—			2			3			(1	)
			Merchant Generation		(4	)		—			(4	)		3			(7	)
			Other		(2	)		—			(2	)		—			(2	)
		Coal Services			2			—			2			3			(1	)
		Biomass Energy			1			—			1			2			(1	)
		Energy Trading & CoEnergy Portfolio			23			—			23			(1	)		24
		Energy Resources Overheads			(4	)					(4	)		(4	)		—
	Total Energy Resources Non-Regulated			$	45		$	—		$	45		$	45		$	—
		Total Energy Resources		$	106		$	16		$	122		$	99		$	23
Energy Distribution
	Regulated — Power Distribution			$	35		$	—		$	35		$	51		$	(16	)
	Non Regulated (Energy Technologies)				(3	)		—			(3	)		(4	)		1
		Total Energy Distribution		$	32		$	—		$	32		$	47		$	(15	)
Energy Gas
	Regulated			$	(45	)	$	—		$	(45	)	$	(23	)	$	(22	)
	Non-Regulated				12			—			12			6			6
		Total Energy Gas		$	(33	)	$	—		$	(33	)	$	(17	)	$	(16	)
Holding Company & Other
		Energy Technology Investments		$	(2	)	$	—		$	(2	)	$	(4	)	$	2
		Other			77			(82	)F		(5	)		(5	)		—
			Total Holding Company & Other	$	75		$	(82	)	$	(7	)	$	(9	)	$	2
Total
	Regulated
		Electric		$	96		$	16		$	112		$	105		$	7
		Gas			(45	)		—			(45	)		(23	)		(22	)
	Non-Regulated				52			—			52			43			9
	Holding Company/Other				77			(82	)		(5	)		(5	)		—
		Total		$	180		$	(66	)	$	114		$	120		$	(6	)
	Discontinued Operations
	ITC			$	(4	)	$	4	G	$	—		$	—		$	—
Total Net Income				$	176		$	(62	)	$	114		$	120		$	(6	)
Total Diluted EPS				$	1.04		$	(0.37	)	$	0.67		$	0.72		$	(0.05	)
Average Diluted Shares Outstanding					168			168			168			164

Key:

A            Blackoust costs
B            Adjustment of EITF 98-10 accounting change — flowback of cumulative effect
C            Loss on sale of steam heating business
D            Disallowance of gas costs
E            Contribution to DTE Energy Foundation
F            Tax credit driven normalization
G            Adjusted gain on sale of ITC

DTE ENERGY COMPANY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (PRELIMINARY/UNAUDITED)
(in Millions)

			Sept. 30			Dec. 31			Percent
ASSETS			2003			2002			Change
Current Assets
	Cash and cash equivalents		$	90		$	133			-32	%
	Restricted cash			100			237			-58	%
	Accounts receivable
		Customer (less allow. for doubtful accounts of $121 and $82)		825			902			-9	%
		Accrued unbilled revenues		187			296			-37	%
		Other		329			237			39	%
	Inventories
		Fuel and gas		596			413			44	%
		Materials and supplies		170			163			4	%
	Assets from risk management and trading activities			261			224			17	%
	Other			199			159			25	%
				2,757			2,764			—
Investments
	Nuclear decommissioning trust funds			484			417			16	%
	Other			468			487			-4	%
				952			904			5	%
Property
	Property, plant and equipment			17,631			17,862			-1	%
	Less accumulated depreciation and depletion			(7,961	)		(8,049	)		1	%
				9,670			9,813			-1	%
Other Assets
	Goodwill			2,084			2,119			-2	%
	Regulatory assets			2,088			1,197			74	%
	Securitized regulatory assets			1,550			1,613			-4	%
		Assets from risk management and trading activities		141			152			-7	%
	Prepaid pension assets			179			172			4	%
	Other			515			504			2	%
				6,557			5,757			14	%
Total Assets			$	19,936		$	19,238			4	%
			Sept. 30			Dec. 31			Percent
LIABILITIES AND SHAREHOLDERS’ EQUITY			2003			2002			Change
Current Liabilities
	Accounts payable		$	650		$	647			—
	Accrued interest			120			115			4	%
	Dividends payable			91			90			1	%
	Accrued payroll			33			49			-33	%
	Short-term borrowings			469			414			13	%
	Current portion long-term debt, including capital leases			752			1,018			-26	%
	Liab. from risk mgmt. and trading activities			279			284			-2	%
	Other			633			596			6	%
				3,027			3,213			-6	%
Other Liabilities
	Deferred income taxes			1,115			916			22	%
	Regulatory liabilities			161			179			-10	%
	Asset retirement obligations			854			—			—
	Unamortized investment tax credit			159			168			-5	%
		Liab. from risk mgmt. and trading activities		212			208			2	%
		Liab. from transportation and storage contracts		486			523			-7	%
	Accrued pension liability			404			582			-31	%
	Nuclear decommissioning			61			416			-85	%
	Other			683			683			—
				4,135			3,675			13	%
Long-Term Debt (net of current portion)
	Mortgage bonds, notes and other			5,660			5,656			—
	Securitization bonds			1,496			1,585			-6	%
		Preferred Securities of Subsidiaries		280			—			—
	Equity-linked securities			186			191			-3	%
	Capital lease obligations			78			82			-5	%
				7,700			7,514			—
Contingencies
Preferred Securities of Subsidiaries				—			271			—
Shareholders’ Equity
	Common stock			3,091			3,052			1	%
	Retained earnings			2,168			2,132			2	%
	Accumulated other comprehensive loss			(185	)		(619	)		-70	%
				5,074			4,565			11	%
Total Liabilities and Shareholders’ Equity			$	19,936		$	19,238			4	%

The Consolidated Statement of Financial Position (Preliminary/Unaudited) should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and 10Q.

n/m — not meaningful

DTE ENERGY COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS (PRELIMINARY/UNAUDITED)

			9 Months - September
			2003			2002
(in Millions)
Operating Activities
Net Income			$	292		$	429
Adjustments to reconcile net income to net cash from operating activities:
	Depreciation, depletion, and amortization			551			590
	Deferred income taxes			(55	)		(143	)
	Gain on sale of assets, net			(132	)		—
	Partners’ share of synfuel project losses			(58	)		(24	)
	Cumulative effect of accounting changes			27			—
	Changes in assets and liabilities, exclusive of changes shown separately			(383	)*		(336	)
		Net cash from operating activities		242			516
Investing Activities
	Plant and equipment expenditures — regulated			(504	)		(500	)
	Plant and equipment expenditures — non-regulated			(58	)		(150	)
	Proceeds from sale of interests in synfuel projects			67			11
	Proceeds from sale of ITC and other assets			643			8
	Restricted cash for debt redemptions			137			34
	Other investments			(66	)		(59	)
		Net cash from (used for) investing activities		219			(656	)
Financing Activities
	Issuance of long-term debt			529			388
	Redemption of long-term debt			(897	)		(512	)
	Issuance of preferred securities			—			180
	Redemption of preferred securities			—			(180	)
	Short-term borrowings, net			55			107
	Issuance of common stock			33			265
	Dividends on common stock			(259	)		(252	)
	Contributions from synfuel partners			44			10
	Other			(9	)		(22	)
		Net cash used for financing activities		(504	)		(16	)
Net Decrease in Cash and Cash Equivalents				(43	)		(156	)
Cash and Cash Equivalents at Beginning of the Period				133			268
Cash and Cash Equivalents at End of the Period			$	90		$	112

* Includes pension contribution of $222 million.

The Detroit Edison Company
Consolidated Statement of Operations (Preliminary/Unaudited)
(in Millions)

		3 Months - September									9 Months - September
		2003			2002			% Change			2003			2002			% Change
Operating Revenues		$	1,017		$	1,200			-15	%	$	2,824		$	3,092			-9	%
Operating Expenses
	Fuel and purchased power		288			386			-25	%		762			841			-9	%
	Operation and maintenance		316			341			-7	%		1,025			937			9	%
	Depreciation and amortization		127			164			-23	%		386			449			-14	%
	Taxes other than income		67			69			-3	%		204			206			-1	%
			798			960			-17	%		2,377			2,433			-2	%
Operating Income			219			240			-9	%		447			659			-32	%
Other (Income) and Deductions
	Interest expense		71			76			-7	%		217			232			-6	%
	Interest income		—			—			—			—			(1	)		—
	Other income		(29	)		(5	)		n/m			(62	)		(16	)		n/m
	Other expenses		30			10			n/m			67			34			n/m
			72			81			-11	%		222			249			-11	%
Income Before Income Taxes			147			159			-8	%		225			410			-45	%
Income Tax Provision			51			54			-6	%		78			138			-43	%
Income Before Accounting Change			96			105			-9	%		147			272			-46	%
Cumulative Effect of Accounting Change			—			—			—			(6	)		—			—
Reported Earnings		$	96		$	105			-9	%	$	141		$	272			-48	%
Cumulative Effect of Accounting Changes
	Asset Retirement Obligations (FAS 143)		—			—			—			6			—			—
Unusual Items
	August 2003 Blackout Costs		16			—			—			16			—			—
	Loss on Sale of Steam Heating Business		—			—			—			14			—			—
	Elimination of Intercompany Gain		—			—			—			—			(4	)		—
Operating Earnings		$	112		$	105			7	%	$	177		$	268			-34	%

The Consolidated Statement of Operations (Preliminary/Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and Form 10Q.

n/m — not meaningful

Michigan Consolidated Gas Company
Consolidated Statement of Operations (Preliminary/Unaudited)
(in Millions)

		3 Months - September									9 Months - September
		2003			2002			% Change			2003			2002			% Change
Operating Revenues		$	142		$	117			21	%	$	1,078		$	942			14	%
Operating Expenses
	Cost of gas		56			31			81	%		637			531			20	%
	Operation and maintenance		90			73			23	%		251			213			18	%
	Depreciation, depletion and amortization		26			26			—			79			79			—
	Taxes other than income		12			11			9	%		42			38			11	%
	Property write-down and contract losses		—			—			—			5			48			n/m
			184			141			30	%		1,014			909			12	%
Operating Income (Loss)			(42	)		(24	)		-75	%		64			33			94	%
Other (Income) and Deductions
	Interest expense		13			12			8	%		42			44			-5	%
	Interest income		(2	)		(2	)		—			(8	)		(8	)		—
	Other		(2	)		(2	)		—			(4	)		(4	)		—
			9			8			-13	%		30			32			-6	%
Income (Loss) Before Income Taxes			(51	)		(32	)		-59	%		34			1			n/m
Income Tax Provision (Benefit)			(14	)		(12	)		-17	%		7			—			—
Reported Earnings (Loss)			(37	)		(20	)		-85	%		27			1			n/m
Purchase Accounting and Other Adjustments			(5	)		(1	)		n/m			(5	)		30			n/m
Operating Earnings (Loss) (A)		$	(42	)	$	(21	)		n/m		$	22		$	31			-29	%

The Consolidated Statement of Operations (Preliminary/Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and Form 10Q.

(A) Represents MichCon’s results included in the DTE Energy Consolidated Statement of Operations.
n/m — not meaningful

Sales Analysis

Electric Sales - Detroit Edison Service Area (000’s of MWh)
	Q3 2003			Q3 2002			% Change
Residential		4,457			5,131			-13.1	%
Commercial		4,162			5,076			-18.0	%
Industrial		3,044			3,472			-12.3	%
Other		653			678			-3.7	%
TOTAL SYSTEM		12,316			14,357			-14.2	%
Choice Sales*		2,141			935			129.0	%
TOTAL SALES		14,457			15,292			-5.5	%
* Includes Dearborn Industrial Group sales
Gas Sales and End User Transportation- MichCon Service Area (Mcf)
		Q3 2003			Q3 2002		% Change
Residential		9,150,523			7,834,319			16.8	%
Commercial		3,093,001			2,851,688			8.5	%
Industrial		314,234			346,125			-9.2	%
		12,557,758			11,032,132			13.8	%
End User Transportation*		26,696,816			35,770,090			-25.4	%
TOTAL SALES		39,254,574			46,802,222			-16.1	%
* includes choice customers
Electric Revenue — Detroit Edison Service Area ($000s)
		Q3 2003			Q3 2002		% Change
Residential		404,888			469,817			-13.8	%
Commercial		338,121			411,264			-17.8	%
Industrial		158,683			179,022			-11.4	%
Other		29,633			29,610			0.1	%
TOTAL SYSTEM		931,325			1,089,713			-14.5	%
Choice Sales*		9,476			4,990			89.9	%
TOTAL SALES		940,801			1,094,703			-14.1	%
* Includes Dearborn Industrial Group sales
Weather
Cooling Degree Days(Detroit Edison service area)
		Q3 2003			Q3 2002		% Change
Actuals		548			782			-30	%
Normal		537			544
Deviation from normal		2.0	%		43.8	%
Heating Degree Days(MichCon service area)
		Q3 2003			Q3 2002		% Change
Actuals		154			66			133	%
Normal		153			147
Deviation from normal		0.7	%		-55.1	%

DTE Energy Debt/Equity Calculation
As of September 30, 2003
($ millions)

Short-term borrowings	$	469
Current portion LTD + cap leases		752
Mortgage bonds, notes, and other long-term debt		5,660
Securitization bonds		1,496
Capital leases		78
Less QUIDS		385
Less MichCon short-term debt		171
Less securitization debt		1,585
Total debt	$	6,314
Trust preferred	$	280
QUIDS		385
Mandatory convertible		186
Total preferred/ other	$	851
Equity	$	5,074
Total cap	$	12,239
Debt		51.59	%
Preferred stock/ other		6.95	%
Common shareholders’ equity		41.46	%
Total		100.00	%