Exhibit 99.01
NEWS
(LOGO)
Media Contact: Marc Rice
404-506-5333 or 1-866-506-5333
MEDIA@SOUTHERNCOMPANY.COM
WWW.SOUTHERNCOMPANY.COM
Investor Relations Contact:
Glen Kundert
404-506-5135
GAKUNDER2@SOUTHERNCO.COM
July 29, 2003
Southern Company announces second quarter earnings
ATLANTA - Southern Company today reported second quarter earnings of $432
million, or 60 cents per share, compared with $332 million, or 47 cents per
share, in the second quarter of 2002. The 2003 results included a one-time
after-tax gain of $88 million in May 2003 from the previously announced
termination of all long-term wholesale power contracts between Southern Company
and Dynegy, Inc.
After adjusting for revenues that would have been recognized for the remainder
of the year had the contracts remained in place, the adjusted gain for 2003 is
$83 million, or 11 cents per share.
Earnings for the first six months of 2003, including the gain from the Dynegy
settlement, were $730 million, or $1.01 per share, compared with $556 million,
or 79 cents per share, in the first six months a year ago.
CEO Allen Franklin said mild weather during the spring reduced second quarter
demand for electricity among retail customers. However, the corresponding
availability of additional low-cost generation for the wholesale market boosted
sales to other utilities and helped Southern Company's competitive generation
business post a strong performance.
Continued customer growth also contributed positively to second quarter
earnings. The influx of people and businesses into the region allowed Southern
Company to serve 1.6 percent more customers than at the end of the second
quarter a year ago.
"Although the mild temperatures had a negative impact on our retail business
during the second quarter, we achieved solid results from competitive generation
and experienced other positive factors," Franklin said. "Overall, our company is
performing very well, and we remain on track to meet our financial, operational
and customer satisfaction targets for the year."
Second quarter revenues were $2.9 billion, compared with $2.6 billion in the
same period a year ago. Revenues for the first six months of 2003 were $5.4
billion, compared with $4.8 billion in the first six months of 2002.
Reviewing operations, Franklin said electricity use by retail customers in
Southern Company's four-state service area decreased 2.1 percent during the
second quarter, compared with the same period in 2002. In-home electricity needs
decreased 4.1 percent. Electricity use by commercial customers -- offices,
stores and other non-manufacturing firms - decreased 1.3 percent. Industrial
energy use decreased 1.1 percent.
Total sales of electricity to Southern Company's customers in the Southeast,
including wholesale sales, increased 3.0 percent in the second quarter.
In conjunction with this earnings announcement, Southern Company has posted on
its Web site a package of detailed financial information on its second quarter
performance. These materials are available at 7:30 a.m. EDT July 29 at
www.southerncompany.com.
Southern Company's financial analyst call will be at 1 p.m. EDT July 29, at
which time Franklin and Chief Financial Officer Tom Fanning will discuss
earnings and earnings guidance and provide a general business update. Investors,
media and the public may listen to a live Webcast of the call at
www.southerncompany.com. A replay of the Webcast will be available at the site
for 12 months.
With 4 million customers and more than 38,000 megawatts of generating capacity,
Atlanta-based Southern Company (NYSE: SO) is the premier super-regional energy
company in the Southeast and a leading U.S. producer of electricity. Southern
Company owns electric utilities in four states, a growing competitive generation
company, an energy services business and a competitive retail natural gas
business, as well as fiber optics and wireless communications. Southern Company
brands are known for excellent customer service, high reliability and retail
electric prices that are 15 percent below the national average. Southern Company
has been named two consecutive years No. 1 on Fortune magazine's "America's Most
Admired Companies" list in the Electric and Gas Utility industry. Southern
Company has more than 500,000 shareholders, making its common stock one of the
most widely held in the United States. Visit the Southern Company Web site at
www.southerncompany.com.
Forward Looking Statements Note:
Certain information contained in this release is forward-looking information
based on current expectations and plans that involve risks and uncertainties.
Forward-looking information includes, among other things, statements concerning
continued customer growth and Southern Company's ability to meet its targets for
the full year 2003. Southern Company cautions that there are certain factors
that can cause actual results to differ materially from the forward-looking
information that has been provided. The reader is cautioned not to put undue
reliance on this forward-looking information, which is not a guarantee of future
performance and is subject to a number of uncertainties and other factors, many
of which are outside the control of Southern Company; accordingly, there can be
no assurance that such indicated results will be realized.
The following factors, in addition to those discussed in Southern Company's
Annual Report on Form 10-K for the year ended Dec. 31, 2002, and subsequent
securities filings, could cause results to differ materially from management
expectations as suggested by such forward-looking information: the impact of
recent and future federal and state regulatory change, including legislative and
regulatory initiatives regarding deregulation and restructuring of the electric
utility industry and also changes in environmental and other laws and
regulations to which Southern Company and its subsidiaries are subject, as well
as changes in application of existing laws and regulations; current and future
litigation, including the EPA civil action against certain subsidiaries of
Southern Company; the effects, extent and timing of additional competition in
the markets in which Southern Company's subsidiaries operate; the impact of
fluctuations in commodity prices, interest rates and customer demand; state and
federal rate regulation; political and legal conditions and developments in the
United States; the performance of projects undertaken by the non-traditional
business and the success of efforts to invest in and develop new opportunities;
internal restructuring or other restructuring options that may be pursued;
potential business strategies, including acquisitions or dispositions of assets
or businesses, which cannot be assured to be completed or beneficial to Southern
Company or its subsidiaries; the ability of counterparties of Southern Company
and its subsidiaries to make payments as and when due; the effects of, and
changes in, economic conditions in the areas in which Southern Company's
subsidiaries operate, including the current soft economy; the direct or indirect
effects on Southern Company's business resulting from the terrorist incidents on
Sept. 11, 2001, or any similar such incidents or responses to such incidents;
financial market conditions and the results of financing efforts; the timing and
acceptance of Southern Company's new product and service offerings; the ability
of Southern Company to obtain additional generating capacity at competitive
prices; and weather and other natural phenomena.
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