[GRAPHIC OMITTED][GRAPHIC OMITTED] Exhibit 99
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One Ameren Plaza
1901 Chouteau Avenue
St. Louis, MO 63103
Contact:
Media Analysts Investors
Tim Fox Bruce Steinke Investor Services
(314) 554-3120 (314) 554-2574 invest@ameren.com
tfox2@ameren.com bsteinke@ameren.com
FOR IMMEDIATE RELEASE
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AMEREN REPORTS SECOND QUARTER 2003 EARNINGS
St. Louis, Mo., July 30, 2003---Ameren Corporation (NYSE: AEE) today
announced 2003 second quarter net income of $110 million, or 68 cents per share,
compared to net income of $115 million, or 80 cents per share, in the second
quarter of 2002. Net income for the first six months of 2003 was $211 million,
or $1.32 per share, compared to $174 million, or $1.22 per share, in the first
half of 2002. The company recorded a net after-tax gain of $18 million, or 11
cents per share, in the first quarter of 2003, due to the adoption of a new
accounting standard related to the recognition of asset retirement obligations.
Excluding this item, the company reported net income before cumulative effect of
change in accounting principle for the first six months of 2003 of $193 million,
or $1.21 per share. All per share earnings are basic and diluted.
"Our 2003 second quarter earnings were significantly impacted by very mild
early summer weather, especially when compared to the hotter than normal weather
conditions experienced in the second quarter of last year. As a result, our
earnings were reduced by approximately 25 to 30 cents per share in the second
quarter when compared to 2002," said Charles W. Mueller, chairman and chief
executive officer of Ameren Corporation. "However, the greater availability of
our low-cost generating plants, coupled with our continued focus on cost
control, helped us deliver solid earnings for the quarter."
Electric revenues in the second quarter of 2003 increased $38 million, as
compared to 2002, principally due to the acquisition of CILCORP Inc. (including
its utility subsidiary that is now operating as AmerenCILCO), which increased
electric revenues by $124 million. The benefit of the acquisition of CILCORP on
revenues was largely offset by reduced sales associated with mild weather. In
the company's pre-acquisition service area, weather-sensitive
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residential and commercial electric kilowatthour sales declined 17 percent and 8
percent, respectively, in the second quarter of 2003, as compared to the second
quarter of 2002. Industrial electric kilowatthour sales increased almost 6
percent in the company's pre-acquisition service territory.
Earnings from interchange sales by AmerenEnergy, Inc. on behalf of AmerenUE
and AmerenEnergy Generating Company increased net income in the second quarter
of 2003 by approximately 7 cents per share. This increase in earnings was
principally due to higher power prices and greater availability of the company's
low-cost generating plants.
Other operations and maintenance expenses increased $19 million in the
second quarter of 2003, compared to 2002, principally due to the addition of
AmerenCILCO. Partially offsetting the increased expenses related to AmerenCILCO
were lower labor costs due to the voluntary retirement program instituted at
Ameren at the end of 2002 and lower plant maintenance costs. Second quarter
miscellaneous expenses were also lower in the second quarter of 2003 versus 2002
as a result of $26 million of costs that were expensed in the second quarter of
2002 for economic development and energy assistance programs included in a
Missouri electric rate case settlement. Depreciation expense and financing costs
increased in 2003 principally as a result of the addition of AmerenCILCO and new
capital additions in the past year.
The second quarter of 2003 was also the first full quarter of operations
since the acquisition on Jan. 31, 2003 of CILCORP. "The integration of Ameren
and AmerenCILCO operations is going very well," said Gary L. Rainwater,
president and chief operating officer of Ameren. "This was clearly evident when
our energy delivery personnel across the entire company tackled several severe
storms in our service territory during the second quarter, restoring power to
thousands of our customers in a safe and timely fashion. We continue to believe
that all significant integration activities will be completed by the end of this
year, and that the acquisition will be accretive to earnings in our first full
year of operations."
Ameren also announced today that the company was reaffirming its 2003
guidance for earnings per share, before the cumulative effect of a change in
accounting principle, of between $2.80 and $3.05 per share. This estimate
excludes the gain of 11 cents per share on the adoption of the new accounting
standard, discussed above, and is subject to, among other things, plant
operations, timely integration of AmerenCILCO, weather conditions, energy market
and economic conditions and other risks and uncertainties outlined in the
company's Forward-Looking Statements.
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Ameren will conduct a conference call for financial analysts at 10:00 a.m.
(Central Time) on Wednesday, July 30, to discuss second quarter 2003 earnings.
Investors, the news media and the public may listen to a live Internet broadcast
of the Ameren analyst call at www.ameren.com by clicking on "Live Webcast:
Second Quarter Ameren Corporation Earnings Conference Call, July 30, 2003, 11:00
a.m. ET," then the appropriate audio link.
The analyst call will also be available for replay on the Internet for one
year. Telephone playback of the conference call will also be available beginning
at 12:00 p.m. (Central Time), July 30, until Aug. 6 by dialing, U.S. (800)
428-6051; international (973) 709-2089, and entering the number: 300529.
With assets of $13.5 billion, Ameren owns a diverse mix of electric
generating plants strategically located in its Midwest market with a capacity of
more than 14,500 megawatts. Ameren serves 1.7 million electric customers and
500,000 natural gas customers in a 49,000 square-mile area of Missouri and
Illinois.
Forward-Looking Statements
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Statements made in this release, which are not based on historical facts,
are "forward-looking" and, accordingly, involve risks and uncertainties that
could cause actual results to differ materially from those discussed. Although
such "forward-looking" statements have been made in good faith and are based on
reasonable assumptions, there is no assurance that the expected results will be
achieved. These statements include (without limitation) statements as to future
expectations, beliefs, plans, strategies, objectives, events, conditions, and
financial performance. In connection with the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, the company is providing this
cautionary statement to identify important factors that could cause actual
results to differ materially from those anticipated. The following factors, in
addition to those discussed elsewhere in this release and in past and subsequent
securities filings, could cause results to differ materially from management
expectations as suggested by such "forward-looking" statements:
o the effects of the stipulation and agreement relating to the AmerenUE
Missouri electric excess earnings complaint case and other regulatory
actions, including changes in regulatory policy;
o changes in laws and other governmental actions, including monetary and
fiscal policy;
o the impact on the company of current regulations related to the
opportunity for customers to choose alternative energy suppliers in
Illinois;
o the effects of increased competition in the future due to, among other
things, deregulation of certain aspects of the company's business at
both the state and federal levels;
o the effects of participation in a Federal Energy Regulatory
Commission-approved regional transmission organization, including
activities associated with the Midwest Independent System Operator;
o availability and future market prices for fuel for the production of
electricity, such as coal and natural gas, purchased power,
electricity and natural gas for distribution, including the use of
financial and derivative instruments, the volatility of changes in
market prices and the ability to recover increased costs;
o average rates for electricity in the Midwest;
o business and economic conditions;
o the impact of the adoption of new accounting standards and the
application of appropriate technical accounting rules and guidance;
o interest rates and the availability of capital;
o actions of ratings agencies and the effects of such actions;
o weather conditions;
o generation plant construction, installation and performance;
o operation of nuclear power facilities and decommissioning costs;
o the effects of strategic initiatives, including acquisitions and
divestitures;
o the impact of current environmental regulations on utilities and
generating companies and the expectation that more stringent
requirements will be introduced over time, which could potentially
have a negative financial effect;
o future wages and employee benefits costs, including changes in returns
on benefit plan assets;
o disruptions of the capital markets or other events making the
company's access to necessary capital more difficult or costly;
o competition from other generating facilities, including new facilities
that may be developed;
o difficulties in integrating AmerenCILCO with the company's other
businesses;
o changes in the coal markets, environmental laws or regulations, or
other factors adversely impacting synergy assumptions in connection
with the CILCORP Inc. acquisition;
o cost and availability of transmission capacity for the energy
generated by the company's generating facilities or required to
satisfy energy sales made by the company; and
o legal and administrative proceedings.
# # #
AMEREN CORPORATION (AEE)
CONSOLIDATED OPERATING STATISTICS
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- --------------------
2003 2002 2003 2002
----- ---- ---- ----
Electric Sales - KWH (in millions):
Residential 3,469 3,745 8,219 7,630
Commercial 4,508 4,325 8,917 8,208
Industrial 4,530 3,040 8,433 6,186
Wholesale 1,967 2,074 4,253 4,149
Other 70 65 148 136
------- ------- ------- -------
Native 14,544 13,249 29,970 26,309
Interchange sales 2,000 2,115 4,421 5,088
EEI 1,456 1,777 2,225 3,364
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Total 18,000 17,141 36,616 34,761
Electric Revenues - (in millions):
Residential $ 281 $ 302 $ 585 $ 537
Commercial 297 280 519 480
Industrial 197 131 337 243
Wholesale 66 68 141 133
Other 6 5 12 10
------- ------- ------- --------
Native 847 786 1,564 1,403
Interchange sales 57 52 158 117
EEI 42 78 60 108
Other 22 14 42 49
------- ------- ------- --------
Total 968 930 1,824 1,677
Power Supply (%):
Fossil 73.8 71.1 77.3 71.7
Nuclear 13.3 13.8 12.4 12.4
Hydro 1.5 2.7 1.1 2.0
Purchased 11.4 12.4 9.2 13.9
Fuel Cost per KWH (cents) 1.074 0.992 1.030 0.981
Gas Sales - MMBTU (in thousands) 16,697 5,013 43,762 22,779
June 30, December 31,
2003 2002
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Common Stock:
Shares outstanding (in millions) 161.7 154.1
Book value per share $25.60 $24.26
Capitalization Ratios:
Common equity 45.8% 51.6%
Preferred stock 2.6% 2.6%
Debt, net of cash 51.6% 45.8%
AMEREN CORPORATION (AEE)
CONSOLIDATED STATEMENT OF INCOME
(Unaudited, in millions, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
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Operating Revenues:
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Electric $ 968 $ 930 $ 1,824 $ 1,677
Gas 118 47 368 172
Other 2 1 4 3
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Total operating revenues 1,088 978 2,196 1,852
Operating Expenses:
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Fuel and purchased power 228 204 449 407
Gas 87 27 272 112
Other operations and maintenance 314 295 613 557
Depreciation and amortization 132 106 256 213
Income taxes 67 83 119 121
Other taxes 77 69 155 137
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Total operating expenses 905 784 1,864 1,547
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Operating Income 183 194 332 305
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Other Income and Deductions:
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Allowance for equity funds used during construction 1 - 1 2
Miscellaneous, net -
Miscellaneous income 5 5 11 8
Miscellaneous expense (8) (39) (11) (43)
Income taxes - 10 - 10
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Total other income and deductions (2) (24) 1 (23)
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Interest Charges and Preferred Dividends:
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Interest 70 53 138 105
Allowance for borrowed funds used during construction (1) (1) (3) (3)
Preferred dividends of subsidiaries 2 3 5 6
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Net interest charges and preferred dividends 71 55 140 108
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Income Before Cumulative Effect of Change in Accounting Principle 110 115 193 174
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Cumulative Effect of Change in Accounting Principle, Net of Income Taxes - - 18 -
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Net Income $ 110 $ 115 $ 211 $ 174
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Earnings per Common Share - Basic and Diluted:
Income Before Cumulative Effect of Change in Accounting Principle $ 0.68 $ 0.80 $ 1.21 $ 1.22
Cumulative Effect of Change in Accounting Principle, Net of Income Taxes - - 0.11 -
------ ------ ------ ------
Net Income $ 0.68 $ 0.80 $ 1.32 $ 1.22
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Average Common Shares Outstanding 161.2 144.4 160.1 142.1
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AMEREN CORPORATION (AEE)
CONSOLIDATED BALANCE SHEET
(Unaudited, in millions)
June 30, December 31,
2003 2002
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Assets
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Property and Plant, net $ 10,197 $ 8,840
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Investments and Other Assets:
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Investments 168 38
Nuclear decommissioning trust fund 191 172
Goodwill and other intangibles 620 -
Other assets 313 307
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Total investments and other assets 1,292 517
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Current Assets:
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Cash and cash equivalents 101 628
Accounts receivable - trade 299 266
Unbilled revenue 257 176
Miscellaneous accounts and notes receivable 56 44
Materials and supplies, at average cost 420 299
Other current assets 44 39
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Total current assets 1,177 1,452
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Regulatory Assets 791 690
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Total Assets $ 13,457 $ 11,499
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Capital and Liabilities
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Capitalization:
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Common stock $ 2 $ 2
Other paid-in capital, principally premium on common stock 2,500 2,203
Retained earnings 1,745 1,739
Accumulated other comprehensive income (100) (93)
Other (10) (9)
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Total common stockholders' equity 4,137 3,842
Preferred stock not subject to mandatory redemption 213 193
Long-term debt, net 4,177 3,433
Preferred stock subject to mandatory redemption 22 -
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Total capitalization 8,549 7,468
Minority Interest in Consolidated Subsidiaries 19 15
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Current Liabilities:
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Current maturities of long-term debt 407 339
Short-term debt 180 271
Accounts and wages payable 297 369
Asset retirement obligations 4 -
Accumulated deferred income taxes 3 5
Taxes accrued 163 45
Other current liabilities 209 172
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Total current liabilities 1,263 1,201
Accumulated Deferred Income Taxes 1,964 1,707
Accumulated Deferred Investment Tax Credits 156 149
Regulatory Liabilities 123 136
Asset Retirement Obligations 403 174
Accrued Pension Liabilities 539 377
Other Deferred Credits and Liabilities 441 272
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Total Capital and Liabilities $ 13,457 $ 11,499
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AMEREN CORPORATION (AEE)
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions)
Six Months Ended
June 30,
2003 2002
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Cash Flows From Operating:
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Net income $ 211 $ 174
Adjustments to reconcile net income to net cash
provided by operating activities:
Cumulative effect of change in accounting principle (18) -
Depreciation and amortization 256 213
Amortization of nuclear fuel 16 16
Amortization of debt issuance costs and premium/discounts 5 4
Allowance for funds used during construction (4) (5)
Deferred income taxes, net (9) (6)
Deferred investment tax credits, net (6) (4)
Other (7) -
Changes in assets and liabilities, excluding the effects of the acquisitions:
Receivables, net 6 (74)
Materials and supplies (14) 32
Accounts and wages payable (149) (139)
Taxes accrued 99 107
Assets, other 17 (12)
Liabilities, other 27 40
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Net cash provided by operating activities 430 346
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Cash Flows From Investing:
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Construction expenditures (332) (401)
Acquisitions, net of cash acquired (489) -
Allowance for funds used during construction 4 5
Nuclear fuel expenditures (1) (16)
Other 2 1
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Net cash used in investing activities (816) (411)
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Cash Flows From Financing:
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Dividends on common stock (205) (182)
Capital issuance costs (11) (23)
Redemptions -
Nuclear fuel lease (20) -
Short-term debt (91) (637)
Long-term debt (420) (5)
Issuances -
Common stock 308 269
Nuclear fuel lease - 6
Long-term debt 298 720
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Net cash provided by (used in) financing activities (141) 148
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Net Change In Cash and Cash Equivalents (527) 83
Cash and Cash Equivalents at Beginning of Year 628 67
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Cash and Cash Equivalents at End of Period $ 101 $ 150
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