2
Exhibit 99.1
FirstEnergy Corp. For Release: April 30, 2003
76 South Main Street
Akron, Ohio 44308
www.firstenergycorp.com
News Media Contact: Investor Contact:
Kristen Baird Kurt Turosky
(330) 761-4261 (330) 384-5500
FIRSTENERGY REPORTS HIGHER FIRST QUARTER EARNINGS;
UPDATES DAVIS-BESSE SCHEDULE
FirstEnergy Corp. (NYSE: FE) today reported first quarter 2003 net income
of $138.8 million, or basic and diluted earnings per share of $0.47, before the
cumulative effect of an accounting change resulting from the adoption of a new
accounting standard for asset retirement obligations. After the accounting
change, first quarter net income was $241.0 million, or basic and diluted
earnings of $0.82 per share. These results compare with net income for the first
quarter of 2002 of $116.5 million, or basic and diluted earnings of $0.40 per
share.
Contributions to FirstEnergy's 2003 first quarter earnings growth include a
9.4 percent increase in electric distribution deliveries; improved natural gas
margins due to reduced sourcing costs; lower financing costs associated with
debt-reduction and refinancing activities; and the absence of unusual charges
that reduced earnings by $0.05 per share in the first quarter of 2002.
Earnings growth was partially offset by several items, including $88
million, or $0.18 per share, in additional expenses associated with the extended
outage at the Davis-Besse Nuclear Power Station and efforts to prepare the plant
for restart ($52 million for replacement power costs and $36 million of
incremental operating and maintenance expenses).
The increase in first quarter earnings also was partially offset by a
$50-million increase in pension and other employee benefit costs.
Total revenues for the first quarter of 2003 were $3.2 billion, compared
with $2.9 billion during the same period in 2002. For the quarter, total
generation kilowatt-hour sales rose 30.6 percent, reflecting both retail and
wholesale transactions.
(more)
FirstEnergy continued making progress in its effort to improve its
financial flexibility through debt reduction and refinancing. During the
quarter, the company retired, refinanced or repriced long-term debt totaling
$685 million, which will produce approximately $20 million in annual savings.
With respect to the schedule for Davis-Besse's return to service, the
FirstEnergy Nuclear Operating Company now expects the plant to be ready for
restart in the first half of the summer, rather than this spring. The revised
timeline reflects work associated with the reactor vessel pressure test, as well
as other physical work required for restart. The Nuclear Regulatory Commission
will make the final determination of when the plant can return to service.
FirstEnergy's Consolidated Report to the Financial Community - which
provides highlights on company developments and financial results for the first
quarter of 2003 - is posted on the company's Internet site -
www.firstenergycorp.com/ir. To access the report, click on Consolidated Report
to the Financial Community.
FirstEnergy is a registered public utility holding company headquartered in
Akron, Ohio. Its subsidiaries and affiliates are involved in the generation,
transmission and distribution of electricity; exploration and production of oil
and natural gas; transmission and marketing of natural gas; and energy
management and other energy-related services.
Forward-Looking Statements: This news release includes forward-looking
statements based on information currently available to management. Such
statements are subject to certain risks and uncertainties. These statements
typically contain, but are not limited to, the terms "anticipate," "potential,"
"expect," "believe," "estimate" and similar words. Actual results may differ
materially due to the speed and nature of increased competition and deregulation
in the electric utility industry, economic or weather conditions affecting
future sales and margins, changes in markets for energy services, changing
energy market prices, legislative and regulatory changes (including revised
environmental requirements), availability and cost of capital, inability to
accomplish or realize anticipated benefits of strategic goals and other similar
factors.
(043003)