EXHIBIT 99.(b)
Florida Progress Corporation
News Release
Corporate Relations Department, St. Petersburg, Florida
FOR IMMEDIATE RELEASE CONTACT: Melanie Forbrick
813/866-5023
[LOGO OMITTED]
Florida Progress reports increase in 1998 first-quarter earnings
St. Petersburg, FL....April 17, 1998....Florida Progress Corporation, parent of
St. Petersburg-based Florida Power Corporation, today reported first-quarter
1998 earnings of $50.5 million, or $.52 per share. This compares with $42
million, or $.43 per share, in the first quarter of 1997. Excluding $3.1 million
in non-recurring fuel replacements costs associated with the outage of the
Crystal River 3 nuclear unit, first-quarter 1998 earnings were $53.6 million, or
$.55 per share, compared with $46.8 million, or $.48 per share, for the first
quarter of 1997. The increase in earnings is due primarily to customer growth
and increased customer usage at Florida Power Corporation and improved operating
results at Electric Fuels Corporation, the company's energy and transportation
group.
Significant items influencing first-quarter results:
o Crystal River nuclear plant returns to service - On February 15, 1998,
Florida Power's nuclear plant returned to service after an extended
maintenance outage.
o Non-utility earnings up significantly - Electric Fuels Corporation
earnings increased $.05 per share for the quarter compared with the
first quarter of 1997. The increase in earnings was the result of a
return to normal operating conditions for its inland marine
transportation group, along with improved results from the mining
operations in its energy and related services group.
o Customer growth and increased usage boost utility sales - With more
than 20,000 new residential and commercial customers, Florida Power's
customer growth of 1.8 percent continued at more that twice the
national average. This combined with colder weather during the first
quarter of 1998, compared with the first quarter of 1997, resulted in a
4.6 percent increase in the retail kilowatt hour sales of Florida
Power.
o Good cost control at the utility - Continued cost control kept
operating and maintenance expenses virtually flat for the first quarter
of 1998, compared with the first quarter of 1997, despite a growing
customer base and the operating and maintenance costs associated with
the Tiger Bay facility, which was acquired in July 1997.
- more -
Florida Progress 1998 first-quarter earnings
Add one
Florida Power Corporation, the largest subsidiary of Florida Progress, earned
$45.8 million, or $.47 per share, on revenues of $565.2 million for the quarter.
This compares with earnings of $41.2 million, or $.42 per share, on revenues of
$553.8 million for the same period in 1997.
Electric Fuels earned $8.2 million, or $.08 per share, in the first quarter of
1998. This compares with $3.3 million, or $.03 per share, in 1997. The increase
was due primarily to improved operating conditions for the inland marine
transportation group and increased coal sales for the energy and related
services group.
In the first quarter of 1997, flooding along the Ohio and Mississippi rivers
significantly affected earnings for the inland marine transportation group.
Normal operating conditions thus far in 1998, combined with a larger barge fleet
increased earnings from this group by $2.5 million, or $.03 per share. Lower
production costs and increased coal sales increased earnings for the energy and
related services group by $1.6 million, or $.02 per share, in the first quarter
of 1998 compared with 1997.
Florida Progress Corporation (NYSE:FPC) is a FORTUNE 500 diversified utility
holding company with assets of $5.8 billion. Its principal subsidiary is Florida
Power Corporation, one of Florida's largest electric utilities serving 4.5
million residents and businesses in 32 counties in the central and northern
portions of the state. Diversified operations include coal mining, marine
operations and rail services.
(earnings chart -- see attached)
###
Three Months Ended Twelve Months Ended
MARCH 31 MARCH 31
--------------------------------------------------------------------------
1998 1997 1998 1997
---------------- ---------------- ------------------ ------------------
Revenues $787,500,000 $747,500,000 $3,355,600,000 $3,175,000,000
---------------- ---------------- ------------------ ------------------
Continuing operations before
non-recurring items 53,600,000 46,800,000 261,000,000 250,900,000
Non-recurring items (3,100,000) (4,800,000) (198,200,000) (6,500,000)
---------------- ---------------- ------------------ ------------------
Continuing operations 50,500,000 42,000,000 62,800,000 244,400,000
Discontinued operations - - - (26,300,000)
---------------------------------- ------------------ ------------------
Net income $50,500,000 $42,000,000 $62,800,000 $218,100,000
================ ================ ================== ==================
Earnings (loss) per share (EPS):
Income from continuing operations
before non-recurring items $ .55 $ .48 $ 2.69 $ 2.59
Non-recurring items (.03) (.05) (2.04) (.07)
---------------- ---------------- ------------------ ------------------
Continuing operations .52 .43 .65 2.52
Discontinued operations - - - (.27)
---------------- ---------------- ------------------ ------------------
Consolidated $ .52 $ .43 $ .65 $ 2.25
================ ================ ================== ==================
Average Common
Shares Outstanding 97,059,243 97,036,161 97,060,069 96,969,645
Prior periods reflect the recapitalization of the spin-off company, Echelon and
its and its associated treatment as discontinued operations.