EXHIBIT 99.(c)
Florida Progress Corporation
News Release
Corporate Relations Department, St. Petersburg, Florida
Media Contact: Karen Raihill -- (813) 866-5023
[LOGO OMITTED]
Florida Progress reports increase in earnings
ST. PETERSBURG, FL (January 27, 1997) -- Florida Progress Corporation
(NYSE:FPC), parent of Florida Power Corporation, reported 1996 earnings from
continuing operations of $250.7 million or $2.59 per share, compared with $238.9
million, or $2.50 a share in 1995.
Florida Power, the largest subsidiary of Florida Progress, earned $232.6 million
or $2.40 per share, on revenues of $2.4 billion for the year, compared to
earnings of $217.3 million, or $2.27 per share, on revenues of $2.3 billion in
1995. This reflects an increase of 5.7% over 1995 earnings per share.
Residential customer growth of about 2% in 1996 was the primary reason for
Florida Power's 2.9% increase in retail energy sales over 1995. Contributing to
the increase was higher usage among commercial and industrial customers. Through
lower debt balances and preferred stock redemptions, Florida Power's financing
costs were reduced $10 million from 1995.
For 1996, Electric Fuels Corporation, the energy and transportation subsidiary
of Florida Progress, had earnings of $27.1 million before a provision for loss
on certain coal properties, up 12.9% over 1995 earnings of $24 million. The
increase is primarily attributable to an increase in tonnage handled in 1996 by
its marine and terminaling services operations. Based on the continuation of
depressed market conditions for Central Appalachian low-sulfur coal, Electric
Fuels recorded a $25.2 million or $.26 a share after-tax charge to earnings
during the fourth quarter for the provision for loss on certain coal properties.
Florida Progress sold its 80% share of Advanced Separation Technologies
Incorporated for $56 million and realized an after-tax gain of $23.5 million or
$.24 per share. Advanced Separation Technologies is a manufacturer of chemical
separation devices headquartered in Lakeland, Florida. It has annual sales of
approximately $27 million and 65 employees.
On December 18, 1996, Florida Progress completed the divestiture of Echelon
International Corporation, formerly Progress Credit Corporation. As part of the
transaction, Florida Progress recorded a $26.3 million after-tax charge to
earnings for the write-down certain non-core assets of Echelon International and
transaction costs associated with the divestiture.
Florida Progress is a Fortune 500 diversified utility holding company with
assets of $5.3 billion. Its principal subsidiary is Florida Power, the state's
second-largest electric utility with about 1.3 million customers. Diversified
operations include coal mining, marine operations, rail services and life
insurance.
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Three Months Ended Twelve Months Ended
December 31 December 31
------------------------------ ------------------------------
1996 1995 1996 1995
-------------- -------------- ------------- ------------
-------------- -------------- ------------- ------------
Revenues $774,900,000 $731,100,000 $3,157,900,000 $3,007,800,000
-------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------
Income from continuing operations 45,600,000 46,000,000 250,700,000 238,900,000
Discontinued operations (1,300,000) -- (26,300,000) --
-------------- -------------- -------------- --------------
Net Income $ 44,300,000 $ 46,000,000 $ 224,400,000 $ 238,900,000
============== ============== ============== ==============
Earnings Per Share (EPS):
Income from continuing operations $ .47 $ .48 $2.59 $2.50
Discontinued operations (.01) - (.27) -
-------- -------- -------- -------
Consolidated $ .46 $ .48 $2.32 $2.50
======== ======== ======== =======
Average Common
Shares Outstanding 97,026,036 96,212,060 96,835,632 95,743,072
Current and prior periods reflect the recapitalization of the spin-off company, Echelon International and its
associated treatment as discontinued operations.
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