EXHIBIT 99.(b)
Florida Progress Corporation
News Release
Corporate Relations Department, St. Petersburg, Florida
FOR IMMEDIATE RELEASE Media contact:
Contact: Mary Estes
(727) 820-5348
FLORIDA PROGRESS REPORTS THIRD QUARTER EARNINGS
St. Petersburg, Florida, October 16, 1998 - Florida Progress Corporation
(NYSE:FPC), parent of St. Petersburg-based Florida Power Corporation, reported
third-quarter 1998 earnings of $117.3 million, or $1.21 per share. This compares
with 1997 third-quarter earnings from recurring operations (excluding one-time
nuclear outage costs) of $102.0 million, or $1.05 per share. The 15-percent
increase in earnings was primarily due to above average retail sales as a result
of the hot weather during the summer months as well as solid customer growth at
Florida Power and improved results from Electric Fuels Corporation, the lead
company for Florida Progress' diversified operations.
Third-quarter earnings for 1997, including after-tax outage costs of $20.4
million, or $.21 per share, associated with Florida Power Corporation's Crystal
River Nuclear Plant, were $81.6 million, or $.84 per share.
FLORIDA POWER CORPORATION
Florida Power, the largest subsidiary of Florida Progress, earned $108.8
million, or $1.12 per share, on revenues of $795.6 million for the third quarter
of 1998. This compares with third-quarter 1997 earnings from recurring
operations of $96.4 million, or $.99 per share, on revenues of $706.9 million.
Including the impact of the extended nuclear outage costs, Florida Power's 1997
third-quarter earnings were $76.0 million, or $.78 per share.
For the second straight quarter, Florida Power experienced a significant
increase in demand for electricity due to continued higher than normal summer
temperatures. Retail kilowatt-hour sales increased 7.1 percent over the same
period a year ago, driven primarily by the warmer weather. In addition to the
weather, Florida Power continues to benefit from the strong retail customer
growth as well as growth in usage per customer. Florida Power has 25,000, or 2
percent, more customers than it did this time last year.
ELECTRIC FUELS CORPORATION
Electric Fuels earned $10.5 million, or $.11 per share, during the third
quarter. This compares with $9.1 million, or $.09 per share, in 1997. The
increase in earnings was primarily attributable to improved results at the
Inland Marine business unit.
Earnings for the Inland Marine group were up $1.3 million over the third quarter
of 1997. The increased earnings were largely due to the expansion of the MEMCO
barge.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $6.0 billion. Its principal subsidiary is Florida Power, the
state's second largest electric utility serving about 1.3 million customers.
Diversified operations include coal mining, marine operations and rail services.
- ---------------------------------------------------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
September 30 September 30
-------------------------------------------------------------------------------
1998 1997 1998 1997
----------------- ----------------- ---------------- -----------------
Revenues $1,031,500,000 $922,500,000 $3,570,400,000 $3,242,200,000
----------------- ----------------- ---------------- -----------------
Continuing operations before
non-recurring items 117,300,000 102,000,000 289,400,000 257,600,000
Non-recurrring items - (20,400,000) (119,500,000) (82,100,000)
----------------- ----------------- ---------------- -----------------
Continuing operations 117,300,000 81,600,000 169,900,000 175,500,000
Discontinued operations - - - (1,300,000)
-------------------------------------- -------------------------------------
Net income $117,300,000 81,600,000 $169,900,000 $174,200,000
================= ================= ================ =================
Earnings (loss) per share (EPS):
Income from continuing operations
before non-recurring items $ 1.21 $ 1.05 $ 2.98 $ 2.65
Non-recurring items - (.21) (1.23) (.84)
----------------- ----------------- ---------------- -----------------
Continuing operations 1.21 .84 1.75 1.81
Discontinued operations - - - (.01)
----------------- ----------------- ---------------- -----------------
Consolidated $ 1.21 $ .84 $ 1.75 $ 1.80
================= ================= ================ =================
Average Common
Shares Outstanding 97,045,233 97,061,543 97,052,832 97,045,345
Note: In June 1998, Florida Power restated its financial results for the second,
third and fourth quarters of 1997 to reflect recognition of the extended nuclear
outage costs as incurred. The change affected the financial results for the
interim reporting periods but did not have any affect on results for the fiscal
year ended 1997. Financial results for the twelve months ended 1997 reflect the
recapitalization of the spin-off company, Echelon International, and its
associated treatment as discontinued operations.
###