EXHIBIT 99.(b)
[CORPORATE LOGO OMITTED]
FLORIDA PROGRESS CORPORATION
NEWS RELEASE
Corporate Relations Department, St. Petersburg, Florida
Media Contact:
Phil Dean (813) 866-5779
Florida Progress reports second-quarter loss after taking a one-time charge for
nuclear outage costs
St. Petersburg, Fla. (July 15, 1997) -- Florida Progress Corporation, the parent
of St. Petersburg-based Florida Power Corporation, today reported a loss of
$38.2 million or $.39 per share due to costs associated with the extended outage
of the company's Crystal River nuclear power plant. This compared with earnings
from continuing operations of $58.8 million or $.61 per share for the same
quarter last year. These second quarter 1996 earnings were before a $25 million
after-tax charge made to reflect the spin-off of Echelon International, the
company's former lending, leasing and commercial real estate business.
Revenues for the second quarter totaled $797.3 million, compared with $773.6
million for the second quarter of 1996.
Florida Power, the company's largest subsidiary, reported a loss of $43.6
million or $.45 per share after recording costs related to the extended outage
of its nuclear plant. The outage began in September 1996. The plant is expected
to return to service by the end of 1997 after modifications are made to several
back up safety systems. Second quarter variations reflect $92 million in
additional operating and maintenance costs associated with the outage and $70
million for non-recoverable replacement power costs.
Excluding the effect of one-time nuclear outage costs, Florida Power earned
$56.1 million or $.58 per share, compared to $53.9 or $.56 per share over the
same period last year.
Electric Fuels Corporation, the energy and transportation subsidiary of Florida
Progress, earned $9.2 million, or $.10 per share during the second quarter.
This compared to earnings of $6.7 million or $.07 per share in the second
quarter of 1996. The higher earnings were made possible by improved operating
results from its Rail Services and Inland Marine Transportation business units.
Florida Progress Corporation Chief Financial Officer Jeffrey R. Heinicka said,
"Having reached a settlement agreement allows us to take a one-time charge for
nuclear outage costs. This lets us put the issue behind us and focus on the
future."
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Three Months Ended Twelve Months Ended
June 31 June 31
-------------------------------- -----------------------------------
1997 1996 1997 1996
---------------- --------------- ----------------- -----------------
$797.3 $773.6 $3,198.7 $3,087.5
---------------- --------------- ----------------- -----------------
Income (loss) from continuing operations (38.2) 58.8 147.6 244.1
Discontinued operations - (25.0) (1.3) (25.0)
---------------- --------------- ----------------- -----------------
Net income (loss) ($38.2) $33.8 $146.3 $219.1
================ =============== ================= =================
Earnings Per Share (EPS):
Income (loss) from continuing operations ($.39) $.61 $1.52 $2.53
Discontinued operations - (.26) (.01) (.26)
------ ------ ------ ------
Consolidated ($.39) $.35 $1.51 $2.27
====== ====== ====== ======
Average Common
shares Outstanding 97,057,713 96,792,084 97,034,292 96,352,278
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Florida Progress Corporation (NYSE:FPC) is a Fortune 500 diversified utility
holding company with assets of $5.5 billion. Its principal subsidiary, Florida
Power Corporation, is the second-largest investor-owned electric utility in the
state. It currently serves approximately 1.3 million customers. Its other
primary subsidiary, Electric Fuels Corporation, is an energy and transportation
company with interests in coal mining, marine transportation and rail services.