Entergy Corporation
[Logo of Entergy] 639 Loyola Avenue
New Orleans, LA 70113
Exhibit 99.1
News
Release
Date: April 11, 2002
For Release: Immediate
Contact: Morgan Stewart (Media) Nancy Morovich (Investor Relations)
(504) 576-4238 (504) 576-5506
mstewa3@entergy.com nmorovi@entergy.com
Entergy Offers First Quarter Earnings Guidance,
Expects to Report Record Operational Earnings for the Quarter
New Orleans, La. - In accordance with Regulation FD, Entergy
Corporation (NYSE: ETR) today indicated that it expects to report
solid first quarter 2002 financial results with operational
earnings of at least $0.76 per share, including the impact of
weather which is expected to be slightly favorable compared to
normal for the period. The current published First Call consensus
estimate for Entergy's first quarter earnings is $0.69 per share.
Entergy reaffirmed operational earnings guidance for the full year
2002 to be in the range of $3.40 to $3.60 per share.
On an as reported basis, Entergy's first quarter earnings will
be substantially lower due to the inclusion of some or all of a
predominantly non-cash, special charge ranging from $(1.15) to
$(1.35) per share. A portion of the charge may be recorded in a
subsequent period, as certain negotiations currently underway and
proper accounting treatment in compliance with applicable rules are
finalized.
Entergy will record this special charge as a result of its
decision to discontinue development of additional greenfield power
plants in both the United States and Europe where overbuilt power
markets are expected to continue to reflect depressed power prices.
The company expects this decision to improve its already strong
financial condition, to substantially reduce capital expenditures
that would have been made in already oversupplied markets, and to
enhance its financial performance going forward by redeploying
capital into more financially attractive investments.
Entergy's previously record for first quarter operational
earnings was $0.75 per share, set in the first quarter of 2001.
Key drivers that are expected to cause current quarter earnings to
differ from those reported in 2001 include the following:
- Utility results are expected to be lower in the first quarter
2002 compared to 2001 as a result of lower industrial sales due to
a comparatively slower economy, higher operation and maintenance
expense, and less favorable weather. The cessation of goodwill
amortization partially offset these negative factors for the
quarter. (For comparative purposes, first quarter 2001 operational
results at the Utility were $0.52, including $0.05 due to the
positive effects of colder-than-normal weather.)
- Entergy Nuclear results are expected to be higher in the
current quarter compared to first quarter 2001 due to the
acquisition of Indian Point 2 in September 2001 and strong
operational performance and high capacity factors achieved across
the non-utility nuclear fleet. (Entergy Nuclear recorded $0.13 in
operational earnings per share in first quarter 2001.)
- Energy Commodity Services results are expected to be higher
compared to first quarter of 2001. This business unit benefited
from a full quarter's contribution from Entergy-Koch versus only
two months in first quarter 2001, as well as strong results in
trading. Results were negatively impacted by continued weak power
prices in the United Kingdom and by the absence in 2002 of
liquidated damages recorded in first quarter 2001 in connection
with construction delays on the Damhead Creek plant in the UK.
(ECS had $0.09 in operational earnings per share in first quarter
2001.)
- Results at the Parent are expected to be flat to lower
compared to first quarter 2001. (Parent had $0.01 in operational
earnings per share in first quarter 2001.)
The special charge Entergy expects to record will reflect the
impairment of assets consistent with Entergy's market point of
view, the disposition of certain commitments, and the restructuring
of Entergy Wholesale Operations. The most significant components of
the charge are related to the Damhead Creek plant and turbines
previously contracted for with GE Power Systems.
Entergy Wholesale Operations will emerge from the
restructuring as an asset operator of approximately 2,500 MW of non-
nuclear generation which is currently operational or in
construction. Entergy expects to continue to pursue the
acquisition of existing or partially complete generation assets
that are priced consistent with its market point of view, with a
particular emphasis on assets that provide trading value to Entergy-
Koch, L.P.
A teleconference will be held on April 25, 2002, at 10:00 a.m.
CDST, and may be accessed by calling Premiere Conferencing at (719)
457-2641 no more than 15 minutes prior to the start of the call.
The confirmation number is 793297. Internet users may also access
the teleconference by visiting Entergy's website at
www.entergy.com. For seven days following the teleconference, a
tape delay will be available and may be accessed by dialing (719)
457-0820. The confirmation number is the same.
Entergy is a major global energy company with power
production, distribution operations and related diversified
services. Entergy owns, manages, or invests in power plants
generating more than 30,000 megawatts of electricity domestically
and internationally, and delivers electricity to about 2.6 million
customers in portions of Arkansas, Louisiana, Mississippi and
Texas. Through Entergy-Koch, L.P., it is also a leading provider
of wholesale energy marketing and trading services.
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Additional investor information can be accessed online at
http://investor.entergy.com/investor/index_main.shtm.
The following constitutes a "Safe Harbor" statement under the
Private Securities Litigation Reform Act of 1995: Investors are
cautioned that forward-looking statements contained in the
foregoing release with respect to the revenues, earnings,
performance, strategies, prospects and other aspects of the
business of Entergy Corporation may involve risks and
uncertainties. Actual events and results may, for a variety of
reasons, prove to be materially different from those indicated in
these forward-looking statements, estimates and projections.
Factors that could influence actual future outcomes include
regulatory decisions, the effects of changes in law, the evolution
of markets and competition, changes in accounting, weather, the
performance of generating units, fuel prices and availability,
financial markets, risks associated with businesses conducted in
foreign countries, changes in business plan, the presence of
competitors with greater financial resources and the impact of
competitive products and pricing; the effect of the Entergy
Corporation's policies, including the amount and rate of growth of
Entergy Corporation's expenses; the continued availability to
Entergy Corporation of adequate funding sources and changes in
interest rates; delays or difficulties in the production, delivery
or installation of products and the provision of services; and
various legal, regulatory and litigation risks. Entergy Corporation
undertakes no obligation to publicly update or revise any forward-
looking statements, whether as a result of new information, future
events or otherwise. For a more detailed discussion of some of the
foregoing risks and uncertainties, see Entergy Corporation's
filings with the Securities and Exchange Commission.