EXHIBIT 99.(A)
NEWS RELEASE
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FLORIDA PROGRESS CORPORATION
One Progress Plaza
St. Petersburg, Florida 33701
Contact: Karen Raihill - (813) 866-5023
Florida Progress Corporation reports increase
in third-quarter earnings
ST. PETERSBURG, Fla. (October 19, 1995) -- Florida Progress Corporation, parent
of St. Petersburg-based Florida Power Corporation, today reported a
third-quarter earnings increase of 20 percent due to stronger retail
kilowatt-hour sales at the utility. This was the result of warmer weather,
customer growth and an improved economy in 1995. The increase in earnings also
was impacted by nonrecurring charges recognized during last year's third
quarter.
Third-quarter results for 1995 were $91.1 million, or 95 cents per share,
compared with $75.8 million, or 80 cents a share, earned a year ago. Revenues
for the quarter totaled $862.6 million, compared with $756.2 million for the
same three-month period in 1994.
Florida Power, the largest subsidiary of Florida Progress, earned $84.7 million,
or 88 cents per share, on revenues of $671.8 million in this year's third
quarter, compared with earnings of $69.4 million, or 73 cents a share, on
revenues of $586.5 million for the same three-month period a year ago.
Retail kilowatt-hour sales at the utility increased by 11.1 percent in the third
quarter of 1995, compared with the prior-year quarter. The increase was helped
by a 2-percent customer growth rate and warmer weather when compared to the
prior year.
Florida Power's cost-control initiatives have allowed the company to hold the
line on operation and maintenance expenses over the past year. This has been
achieved even with the addition of more than 25,000 new customers since this
time last year.
Partially offsetting higher energy sales and cost-reduction efforts during the
quarter were increased expenses for nuclear decommissioning and depreciation.
Also, in the third quarter of 1995, Florida Power began recognizing charges
related to a Florida Public Service Commission-approved amortization of
transmission facilities' costs.
In the prior-year quarter, Florida Power recognized restructuring costs that
reduced after-tax earnings by $4.4 million, or 5 cents a share. Also, in 1994,
Florida Power subsidiaries withdrew as equity partners from a gas pipeline
project. The write-off of the utility's pipeline investment lowered 1994
third-quarter earnings by $3.9 million, or 4 cents per share.
Earnings from the diversified operations this quarter were comparable to
operating results during the same period in 1994.
Florida Progress (NYSE: FPC) is a Fortune 500 diversified utility holding
company with assets of $5.7 billion. Its principal subsidiary is Florida Power,
the state's second-largest electric utility with more than 1.2 million
customers. Diversified operations include coal mining and transportation, life
insurance, real estate and lending and leasing.
Three Months Ended Three Months Ended
September 30 September 30
1995 1994 1995 1994
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Revenues $862,600,000 $756,200,000 $2,991,600,000 $2,722,100,000
Net Income $ 91,100,000 $ 75,800,000 $ 238,900,000 $ 203,200,000
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Earnings Per Share (EPS):
Florida Power Corporation $ .88 $ .73 $2.28 $1.95
Diversified Operations .07 .07 .22 .27
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Consolidated $ .95 $ .80 $2.50 $2.22
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Average Common
Shares Outstanding 95,904,857 94,570,194 95,422,794 91,485,841