[NEWS LOGO] [NISOURCE LOGO]
801 E. 86TH AVENUE
MERRILLVILLE, IN 46410
FOR IMMEDIATE RELEASE
January 30, 2004
FOR ADDITIONAL INFORMATION
MEDIA INVESTORS
Kris Falzone Dennis Senchak
Vice President, Corporate Communications Vice President, Investor Relations
(219) 647-5581 (219) 647-6085
klfalzone@nisource.com senchak@nisource.com
INVESTORS
Randy Hulen Rae Kozlowski
Director, Investor Relations Manager, Investor Relations
(219) 647-5688 (219) 647-6083
rghulen@nisource.com ekozlowski@nisource.com
NISOURCE REPORTS STRONG 2003 EARNINGS
EARNINGS IMPROVE ON LOWER INTEREST EXPENSE AND COLDER WEATHER
MERRILLVILLE, IND. -- NiSource Inc. (NYSE: NI) delivered on its commitments to
investors during 2003 and is well positioned for 2004, Chairman, President and
Chief Executive Officer Gary L. Neale said today as the company reported strong
earnings for the fiscal year ended Dec. 31, 2003.
"We accomplished what we set out to do in 2003," Neale said. "We strengthened
our balance sheet, completed the announced divestitures of our major non-core
assets, held the line on operation and maintenance costs and continued our focus
on meeting customers' expectations while generating solid shareholder returns."
Colder weather and lower interest expense contributed to improved income from
continuing operations for the year ended Dec. 31, 2003, of $425.7 million, or
$1.64 per share, compared with $398.1 million, or $1.89 per share, in 2002.
Taking into consideration results from discontinued operations, net income was
$85.2 million, or $0.33 per share, for 2003, compared with $372.5 million, or
$1.77 per share, in the 12 months ended Dec. 31, 2002. There were 48.6 million
more average shares outstanding at Dec. 31, 2003, compared with the end of 2002.
Weather in NiSource's gas markets was 7.9 percent colder overall during the year
than in 2002, Neale noted, resulting in improved natural gas sales by the
company's utility assets. This favorable impact was slightly offset by a cooler
summer in northern Indiana compared with 2002, reducing electric sales.
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NISOURCE REPORTS STRONG 2003 EARNINGS
PAGE 2
For the three months ended Dec. 31, 2003, income from continuing operations was
$140.6 million, or $0.54 per share, compared with $134.5 million, or $0.59 per
share, for the same period a year ago. The company reported net income of $139.8
million, or $0.54 per share, compared with net income of $82.1 million, or $0.36
per share, in the fourth quarter of 2002. Weather was 12.8 percent warmer in the
fourth quarter of 2003 compared with the year-ago period.
"One of our major accomplishments in 2003 was our continued progress in reducing
debt," Neale noted. "Since the end of 2000, we've reduced debt by $2 billion
through funds generated from operations, the divestiture of our major non-core
assets and the issuance of common equity, helping to drive down interest expense
and strengthen our balance sheet."
Debt reduction and the elimination of risk associated with non-core businesses
were positive factors in securing stable credit ratings from all three rating
agencies, Neale said. During 2003, Standard & Poor's, Moody's Investors Service
and Fitch Ratings all affirmed NiSource's investment grade credit ratings with a
stable outlook.
Another key accomplishment during 2003 was the development of a new corporate
structure creating a focus on NiSource's key constituencies as well as the
continued delivery of safe, reliable and cost-effective utility and pipeline
services. With NiSource's core businesses now virtually 100 percent regulated,
Robert C. Skaggs, Jr., executive vice president, Regulated Revenue, leads a team
that works across all NiSource markets to develop regulatory strategies that
benefit both customers and shareholders. Samuel W. Miller, Jr., executive vice
president and chief operating officer, is responsible for the delivery of
natural gas and electricity to NiSource's 3.7 million distribution customers and
the transmission and storage of natural gas in the pipeline business.
Neale emphasized that under the new structure, employees are building a
coordinated and integrated strategy for NiSource's distribution businesses,
electric generation and transmission, pipelines and corporate support functions.
"Our organizational changes allow us to focus on working collectively to become
the best company we can be in the eyes of our customers and shareholders," he
said.
For 2004, Neale said NiSource will continue to control O&M costs to contribute
to profitability and continued reasonable prices for customers; focus on
regulated revenue growth from its utility and pipeline businesses to reduce risk
and produce solid returns; employ capital effectively to foster disciplined
growth; standardize operations where appropriate to improve service and lower
costs; and move to best-in-class processes to provide good customer service at
reasonable costs to benefit both customers and shareholders.
"Meeting these goals will help us deliver earnings per share for 2004 in a range
of $1.65 to $1.70, assuming normal weather and an estimate of customer usage
patterns consistent with current gas prices," Neale said.
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NISOURCE REPORTS STRONG 2003 EARNINGS
PAGE 3
FOURTH QUARTER 2003 OPERATING INCOME
NiSource's consolidated fourth quarter 2003 operating income was $319.3 million
compared with $334.0 million for the same period in 2002. This decrease in
operating income was due largely to warmer weather for the three months ended
Dec. 31, 2003, compared to the fourth quarter of 2002, and increased employee
benefits and pension expenses, mainly offset by a gain on the sale of NiSource's
interest in Mid-Tex Gas Storage Company LLP, the approval of a bad debt tracker
for Columbia Gas of Ohio that allowed for the recovery of previously uncollected
accounts receivable, and a reversal of a litigation reserve relating to a
lawsuit that was settled in the fourth quarter of 2003. Operating income for
NiSource's business segments for the quarter ended Dec. 31, 2003, is discussed
below.
GAS DISTRIBUTION throughput for the period decreased by 19.8 MDth to 252.6 MDth,
largely due to reduced residential and commercial sales as a result of warmer
weather during the fourth quarter of 2003 compared with the same period in 2002.
Operating income was $162.6 million, a decrease of $32.2 million versus the
fourth quarter of 2002. The decrease was mainly attributable to lower net
revenues as a result of warmer weather in the fourth quarter of 2003 compared
with the same period in 2002. Operating expenses decreased slightly as a result
of lower gross receipts taxes and the approval of a bad debt tracker for
Columbia Gas of Ohio that allowed for the recovery of previously uncollected
accounts receivable, mostly offset by increased employee benefit expenses, and
increased pension and post-retirement expenses.
GAS TRANSMISSION AND STORAGE operations reported operating income of $109.4
million, an increase of $0.6 million from the prior year. The 2002 period was
unfavorably impacted by increased expenses related to NiSource's reorganization
initiatives and other employee-related costs and favorably impacted by a
reduction in reserves related to unaccounted-for gas.
ELECTRIC operations reported operating income of $61.3 million, a decrease of
$0.6 million from the comparable period last year primarily resulting from
increased property taxes and pension expense, partially offset by lower electric
production expenses.
The OTHER segment reported an operating loss of $7.1 million, an improvement of
$11.4 million compared to the fourth quarter of 2002, largely due to a gain on
the sale of NiSource's interest in Mid-Tex Gas Storage and a reversal of a
litigation reserve relating to a lawsuit that was settled in the fourth quarter
of 2003.
CORPORATE operating loss was $6.9 million, versus an operating loss of $13.0
million from the comparable 2002 period. The 2002 period was unfavorably
impacted by restructuring charges recorded in the fourth quarter as part of the
reorganization initiative.
OTHER ITEMS
Interest expense was $113.2 million for the quarter, a decrease of $16.8 million
from the same period in 2002, due to a quarter-over-quarter reduction in
short-term borrowings and lower short- and long-term interest rates. Income
taxes for the fourth quarter of 2003 were $67.3 million, a $2.4 million increase
from 2002 mainly resulting from higher pre-tax income.
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NISOURCE REPORTS STRONG 2003 EARNINGS
PAGE 4
TWELVE-MONTH PERIOD OPERATING INCOME
NiSource's consolidated operating income was $1,116.3 million for the 12 months
ended December 31, 2003, compared with $1,152.2 million for the same period in
2002. Net revenue decreased $10.6 million as a result of lower interruptible
transmission service revenues, higher costs to meet customer demand during a
period of sustained cold weather in the Northeast market areas and credits
issued to electric customers pursuant to the 2002 rate review settlement with
the Indiana Utility Regulatory Commission (IURC), partially offset by increased
sales and deliveries of natural gas due to colder weather during the first
quarter of 2003. Operating expenses increased $25.3 million from the comparable
2002 period mainly as a result of higher gross receipts taxes. NiSource's
business segment operating income for the year ended Dec. 31, 2003, is discussed
below.
GAS DISTRIBUTION throughput for the period decreased by 45.3 MDth to 878.9 MDth,
mainly due to lower off-system sales, slightly offset by increased residential
and commercial sales as a result of colder weather during the first quarter of
2003. Operating income was $506.4 million for the 12-month period, an increase
of $47.3 million from the same period in 2002. Operating income improved as a
result of higher net revenues from increased sales and deliveries of natural gas
due to colder weather during the first quarter of 2003. Operating expenses
increased as a result of higher pension and post-retirement expenses, higher
gross receipts taxes and insurance recoveries for environmental expenses in the
2002 period, slightly offset by a reduction in administrative and employee
related expenses and the approval of a bad debt tracker for Columbia Gas of Ohio
that allowed for the recovery of previously uncollected accounts receivable.
GAS TRANSMISSION AND STORAGE operations reported operating income of $398.8
million, an increase of $0.5 million from the 2002 period, reflecting a
reduction in administrative and employee related expenses, and a reversal of a
litigation reserve relating to a lawsuit that was settled in the second quarter
of 2003. These benefits to operating income were for the most part offset by
lower interruptible transmission service revenues and higher costs to meet
customer demand during a period of sustained cold weather in the Northeast
market areas during the first quarter of 2003. The 2002 period was favorably
impacted by a reduction in reserves related to unaccounted-for gas and
unfavorably impacted by the recognition of a reserve related to a long-term note
receivable.
ELECTRIC operations sold 18,439.2 gwh for the year, a decrease of 336.7 gwh from
last year primarily as a result of cooler weather during the summer season of
2003 and reduced wholesale sales. Operating income was $267.5 million, a
decrease of $54.8 million from last year resulting from the impact of
unfavorable weather during the summer season, lower revenues due to credits
issued to electric customers pursuant to the 2002 rate review settlement with
the IURC, increased pension expense and increased property tax expense,
partially offset by decreased administrative and employee related expenses and
lower uncollectible receivables expense.
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NISOURCE REPORTS STRONG 2003 EARNINGS
PAGE 5
The OTHER segment reported an operating loss of $43.8 million, versus an
operating loss of $43.1 million in the 2002 period. 2002 operating expenses were
lower as a result of a reduction in estimated sales taxes that occurred in 2002
related to sales of natural gas to customers of a subsidiary previously engaged
in the retail and wholesale gas marketing business, mostly offset by expenses
associated with the July 1, 2002 sale of a portfolio of EnergyUSA-TPC gas
marketing contracts. The 2003 period included a gain on the sale of NiSource's
interest in Mid-Tex Gas Storage and a reversal of a litigation reserve relating
to a lawsuit that was settled in the fourth quarter of 2003. In addition, both
periods included losses associated with Whiting Clean Energy.
CORPORATE operating loss was $12.6 million, versus operating income of $15.6
million in the 2002 period. The decrease was primarily due to the gain on the
sale of NiSource's SM&P utility line-locating business in 2002.
OTHER ITEMS
Interest expense was $464.7 million for the 12-month period ended Dec. 31, 2003,
compared to $516.4 million for the 12 months of 2002, a decrease of $51.7
million due to a year-over-year reduction in short-term borrowings and lower
short- and long-term interest rates. Income taxes for the 12 months of 2003 were
$234.2 million, a $15.3 million increase from 2002, mainly resulting from higher
pre-tax income.
ABOUT NISOURCE
NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 holding
company engaged in natural gas transmission, storage and distribution, as well
as electric generation, transmission and distribution. NiSource operating
companies deliver energy to 3.7 million customers located within the high-demand
energy corridor stretching from the Gulf Coast through the Midwest to New
England. Information about NiSource and its subsidiaries is available via the
Internet at www.nisource.com.
Note: NiSource will host a conference call with financial analysts at 9:15 a.m.
EST today. All interested parties are invited to listen to the discussion via
Webcast at www.nisource.com. A recorded playback will be available after 2 p.m.
EST today at (800) 642-1687, pass code 4977968. (International participants
should dial (706) 645-9291.)
FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Those statements include statements regarding
the intent, belief or current expectations of the Company and its management.
Although NiSource Inc. believes that its expectations are based on reasonable
assumptions, it can give no assurance that its goals will be achieved. Investors
are cautioned that the forward-looking statements in this presentation are not
guarantees of future performance and involve a number of risks and
uncertainties, and that actual results could differ materially from those
indicated by such forward-looking statements. Important factors that could cause
actual results to differ materially from those indicated by such forward-looking
statements include, but are not limited to, the following: weather, fluctuations
in supply and demand for energy commodities, growth opportunities for NiSource's
businesses, increased competition in deregulated energy markets, dealings with
third parties over whom NiSource has no control, the regulatory process,
regulatory and legislative changes, changes in general economic, capital and
commodity market conditions, and counter-party credit risk.
###
NISOURCE INC.
Income Statement Data
Three Months Twelve Months
Ended December 31, Ended December 31,
------------------------- ----------------------
(in millions, except per share amounts) 2003 2002 2003 2002
- -----------------------------------------------------------------------------------------------------------------------
NET REVENUES
Gas distribution $ 1,012.8 $ 1,054.3 $ 3,619.4 $ 2,890.4
Gas transmission and storage 281.3 286.1 1,033.5 1,014.1
Electric 261.3 248.4 1,115.9 1,103.6
Other 127.2 147.6 477.8 311.7
- -----------------------------------------------------------------------------------------------------------------------
Gross Revenues 1,682.6 1,736.4 6,246.6 5,319.8
Cost of sales 871.0 868.8 3,186.3 2,248.9
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Total Net Revenues 811.6 867.6 3,060.3 3,070.9
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OPERATING EXPENSES
Operation and maintenance 311.0 332.8 1,185.9 1,185.0
Depreciation and amortization 124.4 125.4 497.0 491.2
Loss (Gain) on sale or impairment of assets (10.0) 0.2 (24.9) (27.5)
Other taxes 66.9 75.2 286.0 270.0
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Total Operating Expenses 492.3 533.6 1,944.0 1,918.7
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OPERATING INCOME 319.3 334.0 1,116.3 1,152.2
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OTHER INCOME (DEDUCTIONS)
Interest expense, net (113.2) (130.0) (464.7) (516.4)
Minority interests - (5.1) (2.5) (20.4)
Preferred stock dividends of subsidiaries (1.1) (1.2) (4.5) (6.7)
Other, net 2.9 1.7 15.3 8.3
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Total Other Income (Deductions) (111.4) (134.6) (456.4) (535.2)
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 207.9 199.4 659.9 617.0
INCOME TAXES 67.3 64.9 234.2 218.9
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INCOME FROM CONTINUING OPERATIONS 140.6 134.5 425.7 398.1
- -----------------------------------------------------------------------------------------------------------------------
Income (Loss) from Discontinued Operations - net of taxes (1.8) (1.1) (0.5) 18.2
Gain (Loss) on Disposition of Discontinued Operations - net of taxes 1.0 (51.3) (331.2) (43.8)
Change in Accounting - net of tax - - (8.8) -
- -----------------------------------------------------------------------------------------------------------------------
NET INCOME $ 139.8 $ 82.1 $ 85.2 $ 372.5
=======================================================================================================================
BASIC EARNINGS (LOSS) PER SHARE ($)
Continuing operations 0.54 0.59 1.64 1.89
Discontinued operations - (0.23) (1.28) (0.12)
Change in accounting - - (0.03) -
- -----------------------------------------------------------------------------------------------------------------------
BASIC EARNINGS PER SHARE 0.54 0.36 0.33 1.77
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DILUTED EARNINGS (LOSS) PER SHARE ($)
Continuing operations 0.53 0.59 1.63 1.87
Discontinued operations - (0.23) (1.27) (0.12)
Change in accounting - - (0.03) -
- -----------------------------------------------------------------------------------------------------------------------
DILUTED EARNINGS PER SHARE 0.53 0.36 0.33 1.75
- -----------------------------------------------------------------------------------------------------------------------
BASIC AVERAGE COMMON SHARES OUTSTANDING (MILLIONS) 261.6 227.0 259.6 211.0
DILUTED AVERAGE COMMON SHARES (MILLIONS) 263.7 228.5 261.6 212.8
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NISOURCE INC.
Summary of Financial and Operating Data
- --------------------------------------------------------------------------------------------------
Three Months Twelve Months
GAS DISTRIBUTION OPERATIONS Ended December 31, Ended December 31,
(in millions) 2003 2002 2003 2002
- --------------------------------------------------------------------------------------------------
NET REVENUES
Sales revenues $ 1,015.4 $ 1,067.5 $ 3,659.9 $ 2,905.4
Less: Cost of gas sold 726.0 742.4 2,625.3 1,921.6
- --------------------------------------------------------------------------------------------------
Net Sales Revenues 289.4 325.1 1,034.6 983.8
Transportation revenues 121.9 122.1 442.0 405.0
- --------------------------------------------------------------------------------------------------
Net Revenues 411.3 447.2 1,476.6 1,388.8
- --------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 158.8 157.0 615.4 589.6
Depreciation and amortization 47.5 47.9 190.2 189.2
Other taxes 42.4 47.5 164.6 150.9
- --------------------------------------------------------------------------------------------------
Total Operating Expenses 248.7 252.4 970.2 929.7
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OPERATING INCOME $ 162.6 $ 194.8 $ 506.4 $ 459.1
==================================================================================================
REVENUES ($ IN MILLIONS)
Residential 636.2 685.9 2,356.2 1,790.7
Commercial 227.2 264.9 841.3 625.8
Industrial 55.1 34.9 194.0 101.9
Transportation 121.9 122.1 442.0 405.0
Off-system sales 18.9 24.2 86.1 191.5
Other 78.0 57.6 182.3 195.5
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Total 1,137.3 1,189.6 4,101.9 3,310.4
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SALES AND TRANSPORTATION (MDTH)
Residential sales 66.4 80.1 230.4 223.4
Commercial sales 25.5 31.3 89.7 83.6
Industrial sales 6.2 6.3 21.8 17.3
Transportation 150.5 148.8 522.9 536.9
Off-system sales 3.9 5.8 10.5 62.8
Other 0.1 0.1 3.6 0.2
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Total 252.6 272.4 878.9 924.2
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HEATING DEGREE DAYS 1,697 1,946 5,134 4,757
NORMAL HEATING DEGREE DAYS 1,771 1,814 4,949 5,129
% COLDER (WARMER) THAN NORMAL (4%) 7% 4% (7%)
CUSTOMERS
Residential 2,278,768 2,318,862
Commercial 210,967 216,024
Industrial 6,009 5,818
Transportation 779,802 705,430
Other 135 146
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Total 3,275,681 3,246,280
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NISOURCE INC.
Summary of Financial and Operating Data (continued)
- --------------------------------------------------------------------------------
Three Months Twelve Months
TRANSMISSION AND STORAGE OPERATIONS Ended December 31, Ended December 31,
(in millions) 2003 2002 2003 2002
- --------------------------------------------------------------------------------
OPERATING REVENUES
Transportation revenues $ 183.1 $ 198.0 $ 663.2 $ 730.4
Storage revenues 44.4 44.4 177.9 178.9
Other revenues 3.1 4.5 12.2 12.9
- --------------------------------------------------------------------------------
Total Operating Revenues 230.6 246.9 853.3 922.2
Less: Cost of gas sold 3.2 7.7 16.0 47.8
- --------------------------------------------------------------------------------
Net Revenues 227.4 239.2 837.3 874.4
- --------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 80.7 91.5 278.3 316.2
Depreciation and amortization 28.0 27.4 111.4 109.4
Gain on sale of assets (1.9) (0.7) (1.8) (2.2)
Other taxes 11.2 12.2 50.6 52.7
- --------------------------------------------------------------------------------
Total Operating Expenses 118.0 130.4 438.5 476.1
- --------------------------------------------------------------------------------
OPERATING INCOME $ 109.4 $ 108.8 $ 398.8 $ 398.3
================================================================================
THROUGHPUT (MDTH)
Columbia Transmission
Market Area 284.8 328.0 1,018.9 1,043.8
Columbia Gulf
Mainline 131.1 146.7 612.6 614.4
Short-haul 29.9 32.1 124.4 146.9
Columbia Pipeline Deep Water 2.5 0.5 7.4 0.7
Crossroads Gas Pipeline 9.1 9.0 34.3 29.2
Granite State Pipeline 10.3 11.6 33.4 33.2
Intrasegment eliminations (127.9) (135.4) (592.1) (553.9)
- --------------------------------------------------------------------------------
Total 339.8 392.5 1,238.9 1,314.3
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NISOURCE INC.
Summary of Financial and Operating Data (continued)
- ----------------------------------------------------------------------------------------------------
Three Months Twelve Months
ELECTRIC OPERATIONS Ended December 31, Ended December 31,
(in millions) 2003 2002 2003 2002
- ----------------------------------------------- ----------------------------------------------------
NET REVENUES
Sales revenues $ 255.8 $ 257.9 $ 1,092.8 $ 1,137.4
Less: Cost of sales 78.3 80.6 364.2 369.0
- ----------------------------------------------------------------------------------------------------
Net Revenues 177.5 177.3 728.6 768.4
- ----------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 57.3 58.2 224.7 222.8
Depreciation and amortization 44.3 44.9 175.1 172.2
Other taxes 14.6 12.3 61.3 51.1
- ----------------------------------------------------------------------------------------------------
Total Operating Expenses 116.2 115.4 461.1 446.1
- ----------------------------------------------------------------------------------------------------
OPERATING INCOME $ 61.3 $ 61.9 $ 267.5 $ 322.3
====================================================================================================
REVENUES ($ IN MILLIONS)
Residential 65.6 64.0 294.9 309.5
Commercial 69.4 64.2 289.8 297.2
Industrial 98.0 96.9 380.2 393.6
Wholesale 13.4 15.9 92.8 92.9
Other 9.4 16.9 35.1 44.2
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Total 255.8 257.9 1,092.8 1,137.4
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SALES (GIGAWATT HOURS)
Residential 685.7 730.5 3,122.5 3,228.4
Commercial 857.2 855.2 3,579.7 3,618.3
Industrial 2,316.9 2,355.0 8,972.2 8,822.4
Wholesale 418.0 578.1 2,623.2 2,983.5
Other 44.4 32.5 141.6 123.3
- ----------------------------------------------------------------------------------------------------
Total 4,322.2 4,551.3 18,439.2 18,775.9
- ----------------------------------------------------------------------------------------------------
COOLING DEGREE DAYS - - 572 1,015
NORMAL COOLING DEGREE DAYS - - 808 792
% WARMER(COOLER)THAN NORMAL - - (29%) 28%
ELECTRIC CUSTOMERS
Residential 388,123 384,891
Commercial 49,252 48,286
Industrial 2,543 2,577
Wholesale 21 22
Other 794 799
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Total 440,733 436,575
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NISOURCE INC.
Summary of Financial and Operating Data (continued)
- -----------------------------------------------------------------------------------------------------------
Three Months Twelve Months
OTHER (INCLUDES ASSETS HELD FOR SALE) Ended December 31, Ended December 31,
(in millions) 2003 2002 2003 2002
- -----------------------------------------------------------------------------------------------------------
NET REVENUES
Products and services revenue $131.6 $ 53.5 $466.2 $112.0
Less: Cost of products purchased 135.1 53.9 450.2 98.2
- -----------------------------------------------------------------------------------------------------------
Net Revenues (3.5) (0.4) 16.0 13.8
- -----------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 7.0 13.5 50.9 47.9
Depreciation and amortization 2.6 2.9 11.2 10.3
Loss (Gain) on sale of assets (7.5) 0.8 (6.4) (5.8)
Other taxes 1.5 0.9 4.1 4.5
- -----------------------------------------------------------------------------------------------------------
Total Operating Expenses 3.6 18.1 59.8 56.9
- -----------------------------------------------------------------------------------------------------------
OPERATING LOSS $ (7.1) $ (18.5) $ (43.8) $ (43.1)
===========================================================================================================
Three Months Twelve Months
CORPORATE Ended December 31, Ended December 31,
($ in millions) 2003 2002 2003 2002
- ---------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS) (6.9) (13.0) (12.6) 15.6
=========================================================================================================
- -------------------------------------------------------------------------------------------------------
CAPITALIZATION DECEMBER 31, December 31,
($ in millions) 2003 2002
- -------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK EQUITY $ 4,415.9 $ 4,174.9
Company-obligated mandatorily redeemable preferred securities
of subsidiary trust holding solely Company debentures - 345.0
Preferred Stock 81.1 84.9
Long-Term Debt 5,993.4 4,849.5
- -------------------------------------------------------------------------------------------------------
TOTAL CAPITALIZATION $ 10,490.4 $ 9,454.3
=======================================================================================================
Current Maturities of Long-Term Debt 118.3 1,224.9
- -------------------------------------------------------------------------------------------------------
Short-Term Debt 685.5 913.1
- -------------------------------------------------------------------------------------------------------
Shares Outstanding (thousands) 262,630 248,860
Book Value of Common Shares 16.81 16.78
- -------------------------------------------------------------------------------------------------------