From:
Rick White (media)
414-221-4444
rick.white@we-energies.com
Colleen Henderson (analysts)
414-221-2592
colleen.henderson@wisconsinenergy.com
MILWAUKEE — Wisconsin Energy Corporation (NYSE:WEC) today reported third quarter net income of $84 million or 71 cents per share, compared with net income of $31 million, or 26 cents per share, in the third quarter of 2003.
In this year’s third quarter, the company recorded a gain of $1.23 per share on the sale of its pump and water systems business offset somewhat by non-cash charges of
82 cents per share associated with the company’s Calumet and Minergy Neenah facilities, debt redemption costs of 9 cents per share and severance costs of
7 cents per share. In last year’s third quarter the company recorded net non-cash charges of 21 cents per share.
Adjusting for these items, earnings from normal operations in the third quarter were
46 cents per share compared to 47 cents per share in the third quarter of 2003.
“We continued to manage our business effectively and we delivered strong positive results despite one of the coolest summers on record,” said Gale Klappa, Wisconsin Energy chairman, president and chief executive officer. “We’re focused on reducing our costs, improving customer satisfaction, completing our Power the Future plan and creating value for our shareholders.”
Year-to-date earnings through September 30, 2004 were $214 million, or $1.79 per share. The results compare with earnings of $172 million, or $1.46 per share, for the same period a year ago.
Earnings per share numbers listed in this news release are on a fully diluted basis.
Conference Call
A conference call is scheduled for 1 p.m. Central time on Tuesday, Nov. 2, 2004. The presentation will review 2004 third quarter earnings and discuss the company’s outlook for the future.
All interested parties, including shareholders, reporters and the general public, are invited to listen to the presentation. The conference call may be accessed by dialing (888) 202-2422 up to 15 minutes before the call begins. There is no passcode required. Access may also be gained through the company’s Web site (www.WisconsinEnergy.com) by clicking on the icon for the “Q3 Earnings Release and Conference Call.” In conjunction with this earnings announcement, Wisconsin Energy has posted on its Web site detailed financial information on its third quarter performance. The materials will be available at 7:30 a.m. Central Time Nov. 2. An archive of the presentation will be available on the Web site after the call. A replay of the audio presentation will be available for one week after the call. Dial (888)203-1112. The passcode is 977951
Non-GAAP Earnings Measures
Earnings from normal operations (non-GAAP earnings), which generally exclude non-operational items as well as one-time charges or credits that are not associated with the company’s ongoing operations, are provided as a complement to earnings presented in accordance with GAAP. These items are not indicative of the company’s operating performance. Therefore, we believe that the presentation of earnings from normal operations is relevant and useful to investors to understand Wisconsin Energy’s operating performance. Management uses such measures internally to evaluate the company’s performance and manage its operations.
Wisconsin Energy Corporation (NYSE:WEC), based in Milwaukee, is a Fortune 500 energy company serving more than one million electric customers in Wisconsin and Michigan’s Upper Peninsula and one million natural gas customers in Wisconsin. The company’s principal utilities are We Energies and Edison Sault Electric. The company’s non-utility businesses include energy development, recycling and renewable energy and real estate development.
One of the Midwest’s premier energy companies, Wisconsin Energy Corporation (www.WisconsinEnergy.com) has nearly 6,000 employees, 62,000 shareholders and more than $9 billion of assets.
Forward-looking statements
Some matters discussed above are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are subject to various risks and uncertainties. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, business and competitive conditions in the deregulating and consolidating energy industry, in general, and, in particular, in the company’s service territories; availability of the company’s generating facilities; changes in purchased power costs; changes in coal or natural gas prices and supply availability and the ability to recover fuel and purchased power costs; varying weather conditions; risks associated with non-utility diversification; regulatory decisions; obtaining necessary regulatory approvals and investment capital to implement the growth
strategy; equity and bond market fluctuations; foreign, governmental, economic, political and currency risks; and other cautionary factors described in the Management’s Discussion and Analysis of Financial Condition and Results of Operations in Wisconsin Energy Corporation’s 10-K for the year ended December 31, 2003, and other factors described in the company’s subsequent reports filed with the Securities and Exchange Commission.
