Cinergy Corp. reported strong earnings for the third quarter of 2005, with adjusted earnings per share reaching a record high of $0.97. Earnings were driven by favorable weather conditions, cost reductions across the company, and contributions from commercial businesses capitalizing on commodity market movements. Cinergy increased its full-year 2005 adjusted earnings guidance to a range of $2.60 to $2.75 per share. The company also continues to make progress on regulatory approvals for its proposed merger with Duke Energy.
Cinergy Corp. reported second quarter 2005 earnings of $51 million, or $0.25 per share, compared to $59 million, or $0.32 per share in the second quarter of 2004. Earnings were negatively impacted by $0.04 per share from mark-to-market losses on hedging contracts and $0.07 per share for merger-related costs. Excluding these impacts, adjusted earnings were $0.36 per share. Cinergy also announced it was lowering its 2005 earnings guidance to $2.50 to $2.65 per share due to weaker-than-expected performance from its commercial gas operations.
DTE Energy reported strong third quarter 2006 earnings of $188 million compared to $4 million in third quarter 2005. Operating earnings, which exclude non-recurring items, were $255 million in third quarter 2006 compared to $5 million in third quarter 2005. All of DTE Energy's business segments experienced increased operating earnings except for Gas Utility which typically has a seasonal loss in the third quarter. DTE Energy tightened its full year 2006 operating earnings guidance excluding synthetic fuels to be between $2.42 to $2.53 per share.
air products & chemicals fy 08 q2 earningsfinance26
- Air Products reported a 40% increase in quarterly EPS to $1.43 per share and a 38% increase in net income to $314 million for its fiscal second quarter.
- Revenues increased 13% to $2.6 billion due to higher volumes in Tonnage Gases and Electronics and Performance Materials as well as higher pricing in Merchant Gases.
- Based on strong first half performance, Air Products raised its full year EPS guidance to a range of $4.95 to $5.05 per share, representing 18-20% annual growth.
DTE Energy announced its third quarter 2007 earnings. Operating earnings were $181 million compared to $255 million in third quarter 2006, primarily due to one-time gains in 2006 and startup costs for new systems in 2007. For the first nine months, operating earnings were $317 million compared to $377 million in 2006, mainly due to onetime costs at Detroit Edison including new system startup. The company expects to meet its annual operating earnings guidance and sees underlying business performing well despite some one-time items.
Altria Group reported its 2007 second quarter results. Reported diluted EPS from continuing operations was up 5.0% to $1.05, including charges of $0.12 per share. Adjusted diluted EPS excluding charges was up 9.5% to $1.15. Full-year 2007 guidance was revised to $4.05-$4.10 diluted EPS from continuing operations. PM USA operating income declined due to $318 million in charges from closing a manufacturing plant but adjusted income was up 1.6%. PMI international cigarette shipment volume was up 3.3% excluding acquisitions.
The second quarter results presentation covered AmeriGas's performance in the fiscal year 2017 second quarter. Key points included:
- The quarter was warmer than normal and last year, leading to a 6% decline in retail propane volume sold. However, unit margins increased 2% despite higher propane costs.
- Adjusted EBITDA was $271.2 million, down 8% from the prior year second quarter.
- Growth initiatives such as cylinder exchange and national accounts saw increased volume, and the company expects to complete 3 acquisitions in the coming months.
- AmeriGas refinanced its long term debt, reducing interest rates and extending maturities with no significant debt due until 2024.
air products & chemicals Q4 FY 06 Earningsfinance26
Air Products reported record fourth quarter sales up 18% and EPS up 22% excluding previously announced charges. For the full fiscal year, sales were up 14% and net income was up 17% driven by volume growth across multiple business segments. Looking forward, the company expects continued strong growth in fiscal 2007 with EPS forecasted to increase 10-14% over fiscal 2006 results.
- Air Products reported record third quarter revenues and earnings, with net income of $285 million and diluted EPS of $1.28. Revenues increased 16% to a record $2.595 billion due to higher volumes and pricing.
- All six of Air Products' business segments saw sales increases compared to the prior year, with the Merchant Gases, Tonnage Gases, and Electronics and Performance Materials segments experiencing the strongest growth.
- Based on continued strong demand, Air Products raised its full-year EPS guidance to a range of $4.30 to $4.35, representing 23-24% year-over-year growth.
Cinergy Corp. reported second quarter 2005 earnings of $51 million, or $0.25 per share, compared to $59 million, or $0.32 per share in the second quarter of 2004. Earnings were negatively impacted by $0.04 per share from mark-to-market losses on hedging contracts and $0.07 per share for merger-related costs. Excluding these impacts, adjusted earnings were $0.36 per share. Cinergy also announced it was lowering its 2005 earnings guidance to $2.50 to $2.65 per share due to weaker-than-expected performance from its commercial gas operations.
DTE Energy reported strong third quarter 2006 earnings of $188 million compared to $4 million in third quarter 2005. Operating earnings, which exclude non-recurring items, were $255 million in third quarter 2006 compared to $5 million in third quarter 2005. All of DTE Energy's business segments experienced increased operating earnings except for Gas Utility which typically has a seasonal loss in the third quarter. DTE Energy tightened its full year 2006 operating earnings guidance excluding synthetic fuels to be between $2.42 to $2.53 per share.
air products & chemicals fy 08 q2 earningsfinance26
- Air Products reported a 40% increase in quarterly EPS to $1.43 per share and a 38% increase in net income to $314 million for its fiscal second quarter.
- Revenues increased 13% to $2.6 billion due to higher volumes in Tonnage Gases and Electronics and Performance Materials as well as higher pricing in Merchant Gases.
- Based on strong first half performance, Air Products raised its full year EPS guidance to a range of $4.95 to $5.05 per share, representing 18-20% annual growth.
DTE Energy announced its third quarter 2007 earnings. Operating earnings were $181 million compared to $255 million in third quarter 2006, primarily due to one-time gains in 2006 and startup costs for new systems in 2007. For the first nine months, operating earnings were $317 million compared to $377 million in 2006, mainly due to onetime costs at Detroit Edison including new system startup. The company expects to meet its annual operating earnings guidance and sees underlying business performing well despite some one-time items.
Altria Group reported its 2007 second quarter results. Reported diluted EPS from continuing operations was up 5.0% to $1.05, including charges of $0.12 per share. Adjusted diluted EPS excluding charges was up 9.5% to $1.15. Full-year 2007 guidance was revised to $4.05-$4.10 diluted EPS from continuing operations. PM USA operating income declined due to $318 million in charges from closing a manufacturing plant but adjusted income was up 1.6%. PMI international cigarette shipment volume was up 3.3% excluding acquisitions.
The second quarter results presentation covered AmeriGas's performance in the fiscal year 2017 second quarter. Key points included:
- The quarter was warmer than normal and last year, leading to a 6% decline in retail propane volume sold. However, unit margins increased 2% despite higher propane costs.
- Adjusted EBITDA was $271.2 million, down 8% from the prior year second quarter.
- Growth initiatives such as cylinder exchange and national accounts saw increased volume, and the company expects to complete 3 acquisitions in the coming months.
- AmeriGas refinanced its long term debt, reducing interest rates and extending maturities with no significant debt due until 2024.
air products & chemicals Q4 FY 06 Earningsfinance26
Air Products reported record fourth quarter sales up 18% and EPS up 22% excluding previously announced charges. For the full fiscal year, sales were up 14% and net income was up 17% driven by volume growth across multiple business segments. Looking forward, the company expects continued strong growth in fiscal 2007 with EPS forecasted to increase 10-14% over fiscal 2006 results.
- Air Products reported record third quarter revenues and earnings, with net income of $285 million and diluted EPS of $1.28. Revenues increased 16% to a record $2.595 billion due to higher volumes and pricing.
- All six of Air Products' business segments saw sales increases compared to the prior year, with the Merchant Gases, Tonnage Gases, and Electronics and Performance Materials segments experiencing the strongest growth.
- Based on continued strong demand, Air Products raised its full-year EPS guidance to a range of $4.30 to $4.35, representing 23-24% year-over-year growth.
- Net revenue for the first quarter of fiscal year 2018 was $576 million, a 3% increase from the previous year's first quarter. Earnings per share excluding special items was $0.60, a 24% increase.
- Trailing twelve months free cash flow was $819 million, representing 35% of trailing twelve month revenue.
- Guidance for the second quarter of fiscal year 2018 estimates revenue of $600-640 million and earnings per share excluding special items of $0.61-0.67.
The document is Burlington Northern Santa Fe Corporation's third quarter 2001 investors' report. Key points:
- Earnings per share were $0.58 compared to $0.64 in third quarter 2000. Freight revenues were $2.31 billion, even with last year.
- Operating expenses were higher by $69 million due to increased compensation, benefits, and fuel costs. Operating income was $502 million versus $571 million in 2000.
- 4.1 million shares were repurchased in the quarter, bringing the total under the buyback program to 101.1 million shares.
- The report provides financial statements and statistics on revenues, expenses, operations, and capital expenditures for
Goodrich Corporation announced strong financial results for the second quarter of 2006, with income from continuing operations increasing 30% over the second quarter of 2005. Sales increased 10% to $1.48 billion due to growth across all segments and market channels. Based on continued strong commercial airplane aftermarket sales, Goodrich increased its full year 2006 sales outlook to $5.75-$5.85 billion and net income per share outlook to $3.40-$3.55. The company also announced several business highlights including expansions of facilities in Scotland and Singapore.
UGI reported solid second quarter results despite warmer than normal weather. Earnings per share were $1.24, down from $1.31 in the prior year quarter but above expectations. Each of the company's business units - AmeriGas, UGI International, Midstream & Marketing, and UGI Utilities - experienced warmer weather but reported increased revenues through investments in less weather-dependent operations and a focus on efficiency. For the full year, UGI expects adjusted earnings per share to be at the lower end or slightly below its guidance range of $2.30 to $2.45, an improvement over fiscal year 2016 results.
air products & chemicals fy 07 q1 Earningsfinance26
- Air Products reported record first quarter earnings per share of $1.03, up 29% from the previous year, on revenues of $2.43 billion, up 21%.
- Operating income was a record $332 million, up 31% over the prior year, driven by strong volume growth across all business segments.
- Based on the strong first quarter results, Air Products raised its full-year earnings per share guidance to a range of $3.98 to $4.10, representing 14-17% growth over the previous year.
This document is Sunoco Inc.'s annual report filed with the SEC for the fiscal year ending December 31, 2007. It provides information on Sunoco's organizational structure and business segments. Sunoco operates petroleum refineries and markets petroleum products. It also manufactures chemicals and owns pipeline and terminal infrastructure for transporting petroleum products. The report describes Sunoco's five business segments: Refining and Supply, Retail Marketing, Chemicals, Logistics and Coke.
- Duke Energy held a conference call to discuss its Q4 2006 earnings. The call included the Chairman & CEO, CFO, and other executives.
- Q4 2006 ongoing diluted EPS was $0.43, flat compared to Q4 2005. Full year 2006 ongoing diluted EPS increased 5% to $1.81.
- Results were driven by additions from the Cinergy merger, partially offset by lower results at Crescent Resources.
- Going forward, Duke Energy expects ongoing EBIT of $200 million from its Commercial Power business in 2007. Regulated capital expenditures will primarily focus on the Carolinas and Indiana jurisdictions.
This document contains the prepared remarks and Q&A from Duke Energy Corporation's earnings conference call for the second quarter of 2006. Key points:
- Duke Energy reported ongoing EPS of $0.43 compared to consensus of $0.38.
- Financial results were impacted by mild weather, lower bulk power sales, and purchase accounting charges from the Cinergy merger.
- The company achieved several strategic objectives in the quarter including closing the Cinergy merger early and announcing the sale of the Commercial Marketing and Trading business.
- While some business units are performing ahead of plan, overall the company is on track to achieve its $1.90 EPS target for 2006.
This document provides an annual report for Aditya Birla Minacs Worldwide Limited and its subsidiaries for the 2010-2011 fiscal year. It summarizes the company's financial performance, with consolidated revenues increasing 16% and operating profits increasing 72% over the previous year. It also discusses the company's business review, outlook, human capital, a merger between subsidiaries, subsidiary companies, and employee stock option plan. The company saw revenue and profit growth but expects ongoing pricing pressures and inflation to impact profitability going forward.
- The company reported third quarter fiscal 2017 revenue of $1.71 billion, meeting its guidance range of $1.70-$1.80 billion. Non-GAAP diluted EPS was $0.74, near the midpoint of guidance range of $0.72-$0.77.
- Revenue increased slightly compared to the previous quarter and grew year-over-year. Non-GAAP operating income increased compared to the previous quarter and year.
- The company provided guidance for fourth quarter fiscal 2017 revenue of $1.725-$1.775 billion and non-GAAP diluted EPS of $0.73-$0.79.
Air Products reported a 15% increase in net income and 16% increase in diluted EPS for its fiscal first quarter ended December 31, 2007 compared to the prior year. Revenues increased 9% to $2.47 billion due to higher volumes, improved pricing, and a weaker dollar. Operating income increased 17% to $372 million. For the full fiscal year, Air Products raised its EPS guidance from $4.80-$5.00 to $4.85-$5.00 due to strong first quarter performance and expectations of continued solid demand and high bidding activity.
- Sanmina reported financial results for Q4 and full year FY2017, with revenue coming in slightly below outlook for Q4 but within the annual guidance range
- On a non-GAAP basis, Q4 revenue was $1.755B and diluted EPS was $0.64, compared to an outlook of $1.725-1.775B and $0.73-0.79
- For Q1 2018, revenue outlook is $1.75-1.8B and non-GAAP diluted EPS is expected to be $0.68-0.74
DTE Energy reported 2006 operating earnings of $593 million, or $3.33 per share, compared to 2005 operating earnings of $577 million, or $3.28 per share. Excluding synthetic fuels, 2006 operating earnings were $2.89 per share, above guidance. The company's electric utility had strong results due to higher rates and customers returning to service, while its gas utility saw lower earnings due to mild weather. DTE Energy reiterated 2007 operating earnings guidance, excluding synthetic fuels, of $2.60 to $2.80 per share and including synthetic fuels of $3.20 to $4.05 per share.
Group assignment on Business Combinationsvictor okoth
FOR SOLUTION OF THE BELOW CASE STUDIES, VISIT AND ASK IT AT ESSAYTUTORS.NET
Group assignment on Business Combinations
Case .1
You have been engaged to audit the financial statements of Solamente Corporation for thefiscal year ended May 31, 2010. You discover that on June 1, 2009, Mika Company hadbeen merged into Solamente in a business combination. You also find that both Solamenteand Mika (prior to its liquidation) incurred legal fees, accounting fees, and printing costsfor the business combination; both companies debited those costs to an intangible assetledger account entitled “Cost of Business Combination.” In its journal entry to record thebusiness combination with Mika, Solamente increased its Cost of Business Combinationaccount by an amount equal to the balance of Mika’s comparable ledger account.
Instructions
Evaluate Solamente’s accounting for the out-of-pocket costs of the business combination with Mika in light of IFRS and GAAP guidelines.
Case .2
You are the controller of Software Company, a distributor of computer software, which isplanning to acquire a portion of the net assets of a product line of Midge Company, a competitorenterprise. The projected acquisition cost is expected to exceed substantially the currentfair value of the identifiable net assets to be acquired, which the competitor has agreedto sell because of its substantial net losses of recent years. The board of directors of Softwareasks if the excess acquisition cost may appropriately be recognized as goodwill.
Instructions
Prepare a memorandum to the board of directors an answer to the question, after consulting the guidelines issued by either FASB or IASB
Case .3
On February 15, 2005, officers of Sun Corporation agreed with George Merlo, sole stockholderof Merlo Company and Merlo Industries, Inc., to acquire all his common stock ownershipin the two companies as follows:
1. 10,000 shares of Shane’s $1 par common stock (current fair value $30 a share) would be issued to George Merlo on February 28, 2005, for his 1,000 shares of $10 par common stock of Merlo Company. In addition, 20,000 shares of Sun common stock would be issued to George Merlo on February 28, 2010, if aggregate net income of Merlo Company for the five-year period then ended exceeded $300,000.
John DeereMedia Release & Financials 2006 2ndfinance11
Deere reported second-quarter earnings of $744.6 million, an increase from $604 million in the same period last year. Overall equipment sales increased 2% for the quarter despite lower agricultural equipment sales. The company expects full-year equipment sales to increase 3-5% and net income to reach around $1.7 billion. Strong global demand for crops is driving the agricultural sector, though rising energy costs are negatively impacting farm incomes in the near term.
ATHLETE WEAR COMPANY CASE STUDY (75 Marks) Athlete Wear Co. is an Irish sports clothing manufacturer for elite amateur and professional athletes. It has recently seen a decline in profitability owing to increased competition from low cost mass production manufacturers and has been outbid for contracts as official clothing supplier for three major international and domestic sporting events. As a result, Athlete Wear is faced with having to suspend its operations immediately unless it can find alternative markets to ensure the business can r
- Black & Decker reported third quarter 2006 earnings per share from continuing operations of $1.74, a 3% increase over the prior year. Sales increased 2% to $1.6 billion.
- Free cash flow for the quarter was $183 million and $320 million year-to-date, an increase of $130 million versus the first nine months of 2005.
- The company repurchased 6.1 million shares in the quarter and increased its share repurchase authorization by 3 million shares. It also declared a quarterly dividend of $0.38 per share.
- Total expenses for Duke Energy North America were $325 million for the first half of 2004, driven by operations and maintenance costs of $161 million and depreciation of $86 million.
- Reported segment EBIT was negative $596 million due to special items including a $361 million loss on the sale of southeast generation assets and $105 million settlement related to the western energy market.
- Reconciliations between quarterly reports and additional financial disclosures show reclassifications between various expense categories but no changes to the overall EBIT amounts.
Duke Energy held an earnings conference call to discuss its first quarter 2005 results. The call included prepared remarks from Duke Energy's Chairman and CEO, Group VP and CFO, and President and COO. They reported earnings of $0.91 per share including special items, and ongoing earnings of $0.44 per share, up nearly 30% from the prior year. Business unit highlights included strong results from Field Services, International Energy, and Crescent Resources. DENA reported a smaller loss than the prior year. The executives provided an outlook for the remainder of 2005 and discussed the impact of recent transactions involving Duke Energy's ownership in Field Services.
The document provides an earnings review for 2004 and outlook for 2005 from Duke Energy Corporation. Some key points:
- 2004 ongoing earnings per share were $1.38, exceeding the target of $1.20. Several business units performed well while DENA losses were lower than expected.
- Goals for 2005 include ongoing earnings per share of $1.60, ongoing segment EBIT growth across most business units, and further reducing debt and risks.
- DENA is expected to post a $150 million ongoing segment EBIT loss for 2005 as it focuses on defining a sustainable long-term business model.
Duke Energy reported financial results for the full year and fourth quarter of 2003. Key highlights include:
1) Regulated utilities and field services showed strong operational and financial performance, while merchant operations produced a loss.
2) Duke Energy exceeded its targets for non-strategic asset sales of over $2 billion and debt reduction of $2.2 billion.
3) Special pre-tax charges of $3.4 billion were taken in the fourth quarter to reduce exposure to merchant generation and international businesses.
4) Annual dividend was maintained at $1.10 per share and debt reduction between $3.5-4 billion is expected in 2004 to strengthen the company's financial position.
Duke Energy reported ongoing earnings of $818 million for the second quarter of 2004, excluding special items. However, including special items, reported earnings were $835 million. Special items included a $17 million gain primarily due to a California settlement and asset sale gains, partially offset by impairment charges. Segment earnings were lower than ongoing earnings primarily due to mild weather and higher planned maintenance costs, but were partially offset by higher bulk power sales and customer growth.
- Net revenue for the first quarter of fiscal year 2018 was $576 million, a 3% increase from the previous year's first quarter. Earnings per share excluding special items was $0.60, a 24% increase.
- Trailing twelve months free cash flow was $819 million, representing 35% of trailing twelve month revenue.
- Guidance for the second quarter of fiscal year 2018 estimates revenue of $600-640 million and earnings per share excluding special items of $0.61-0.67.
The document is Burlington Northern Santa Fe Corporation's third quarter 2001 investors' report. Key points:
- Earnings per share were $0.58 compared to $0.64 in third quarter 2000. Freight revenues were $2.31 billion, even with last year.
- Operating expenses were higher by $69 million due to increased compensation, benefits, and fuel costs. Operating income was $502 million versus $571 million in 2000.
- 4.1 million shares were repurchased in the quarter, bringing the total under the buyback program to 101.1 million shares.
- The report provides financial statements and statistics on revenues, expenses, operations, and capital expenditures for
Goodrich Corporation announced strong financial results for the second quarter of 2006, with income from continuing operations increasing 30% over the second quarter of 2005. Sales increased 10% to $1.48 billion due to growth across all segments and market channels. Based on continued strong commercial airplane aftermarket sales, Goodrich increased its full year 2006 sales outlook to $5.75-$5.85 billion and net income per share outlook to $3.40-$3.55. The company also announced several business highlights including expansions of facilities in Scotland and Singapore.
UGI reported solid second quarter results despite warmer than normal weather. Earnings per share were $1.24, down from $1.31 in the prior year quarter but above expectations. Each of the company's business units - AmeriGas, UGI International, Midstream & Marketing, and UGI Utilities - experienced warmer weather but reported increased revenues through investments in less weather-dependent operations and a focus on efficiency. For the full year, UGI expects adjusted earnings per share to be at the lower end or slightly below its guidance range of $2.30 to $2.45, an improvement over fiscal year 2016 results.
air products & chemicals fy 07 q1 Earningsfinance26
- Air Products reported record first quarter earnings per share of $1.03, up 29% from the previous year, on revenues of $2.43 billion, up 21%.
- Operating income was a record $332 million, up 31% over the prior year, driven by strong volume growth across all business segments.
- Based on the strong first quarter results, Air Products raised its full-year earnings per share guidance to a range of $3.98 to $4.10, representing 14-17% growth over the previous year.
This document is Sunoco Inc.'s annual report filed with the SEC for the fiscal year ending December 31, 2007. It provides information on Sunoco's organizational structure and business segments. Sunoco operates petroleum refineries and markets petroleum products. It also manufactures chemicals and owns pipeline and terminal infrastructure for transporting petroleum products. The report describes Sunoco's five business segments: Refining and Supply, Retail Marketing, Chemicals, Logistics and Coke.
- Duke Energy held a conference call to discuss its Q4 2006 earnings. The call included the Chairman & CEO, CFO, and other executives.
- Q4 2006 ongoing diluted EPS was $0.43, flat compared to Q4 2005. Full year 2006 ongoing diluted EPS increased 5% to $1.81.
- Results were driven by additions from the Cinergy merger, partially offset by lower results at Crescent Resources.
- Going forward, Duke Energy expects ongoing EBIT of $200 million from its Commercial Power business in 2007. Regulated capital expenditures will primarily focus on the Carolinas and Indiana jurisdictions.
This document contains the prepared remarks and Q&A from Duke Energy Corporation's earnings conference call for the second quarter of 2006. Key points:
- Duke Energy reported ongoing EPS of $0.43 compared to consensus of $0.38.
- Financial results were impacted by mild weather, lower bulk power sales, and purchase accounting charges from the Cinergy merger.
- The company achieved several strategic objectives in the quarter including closing the Cinergy merger early and announcing the sale of the Commercial Marketing and Trading business.
- While some business units are performing ahead of plan, overall the company is on track to achieve its $1.90 EPS target for 2006.
This document provides an annual report for Aditya Birla Minacs Worldwide Limited and its subsidiaries for the 2010-2011 fiscal year. It summarizes the company's financial performance, with consolidated revenues increasing 16% and operating profits increasing 72% over the previous year. It also discusses the company's business review, outlook, human capital, a merger between subsidiaries, subsidiary companies, and employee stock option plan. The company saw revenue and profit growth but expects ongoing pricing pressures and inflation to impact profitability going forward.
- The company reported third quarter fiscal 2017 revenue of $1.71 billion, meeting its guidance range of $1.70-$1.80 billion. Non-GAAP diluted EPS was $0.74, near the midpoint of guidance range of $0.72-$0.77.
- Revenue increased slightly compared to the previous quarter and grew year-over-year. Non-GAAP operating income increased compared to the previous quarter and year.
- The company provided guidance for fourth quarter fiscal 2017 revenue of $1.725-$1.775 billion and non-GAAP diluted EPS of $0.73-$0.79.
Air Products reported a 15% increase in net income and 16% increase in diluted EPS for its fiscal first quarter ended December 31, 2007 compared to the prior year. Revenues increased 9% to $2.47 billion due to higher volumes, improved pricing, and a weaker dollar. Operating income increased 17% to $372 million. For the full fiscal year, Air Products raised its EPS guidance from $4.80-$5.00 to $4.85-$5.00 due to strong first quarter performance and expectations of continued solid demand and high bidding activity.
- Sanmina reported financial results for Q4 and full year FY2017, with revenue coming in slightly below outlook for Q4 but within the annual guidance range
- On a non-GAAP basis, Q4 revenue was $1.755B and diluted EPS was $0.64, compared to an outlook of $1.725-1.775B and $0.73-0.79
- For Q1 2018, revenue outlook is $1.75-1.8B and non-GAAP diluted EPS is expected to be $0.68-0.74
DTE Energy reported 2006 operating earnings of $593 million, or $3.33 per share, compared to 2005 operating earnings of $577 million, or $3.28 per share. Excluding synthetic fuels, 2006 operating earnings were $2.89 per share, above guidance. The company's electric utility had strong results due to higher rates and customers returning to service, while its gas utility saw lower earnings due to mild weather. DTE Energy reiterated 2007 operating earnings guidance, excluding synthetic fuels, of $2.60 to $2.80 per share and including synthetic fuels of $3.20 to $4.05 per share.
Group assignment on Business Combinationsvictor okoth
FOR SOLUTION OF THE BELOW CASE STUDIES, VISIT AND ASK IT AT ESSAYTUTORS.NET
Group assignment on Business Combinations
Case .1
You have been engaged to audit the financial statements of Solamente Corporation for thefiscal year ended May 31, 2010. You discover that on June 1, 2009, Mika Company hadbeen merged into Solamente in a business combination. You also find that both Solamenteand Mika (prior to its liquidation) incurred legal fees, accounting fees, and printing costsfor the business combination; both companies debited those costs to an intangible assetledger account entitled “Cost of Business Combination.” In its journal entry to record thebusiness combination with Mika, Solamente increased its Cost of Business Combinationaccount by an amount equal to the balance of Mika’s comparable ledger account.
Instructions
Evaluate Solamente’s accounting for the out-of-pocket costs of the business combination with Mika in light of IFRS and GAAP guidelines.
Case .2
You are the controller of Software Company, a distributor of computer software, which isplanning to acquire a portion of the net assets of a product line of Midge Company, a competitorenterprise. The projected acquisition cost is expected to exceed substantially the currentfair value of the identifiable net assets to be acquired, which the competitor has agreedto sell because of its substantial net losses of recent years. The board of directors of Softwareasks if the excess acquisition cost may appropriately be recognized as goodwill.
Instructions
Prepare a memorandum to the board of directors an answer to the question, after consulting the guidelines issued by either FASB or IASB
Case .3
On February 15, 2005, officers of Sun Corporation agreed with George Merlo, sole stockholderof Merlo Company and Merlo Industries, Inc., to acquire all his common stock ownershipin the two companies as follows:
1. 10,000 shares of Shane’s $1 par common stock (current fair value $30 a share) would be issued to George Merlo on February 28, 2005, for his 1,000 shares of $10 par common stock of Merlo Company. In addition, 20,000 shares of Sun common stock would be issued to George Merlo on February 28, 2010, if aggregate net income of Merlo Company for the five-year period then ended exceeded $300,000.
John DeereMedia Release & Financials 2006 2ndfinance11
Deere reported second-quarter earnings of $744.6 million, an increase from $604 million in the same period last year. Overall equipment sales increased 2% for the quarter despite lower agricultural equipment sales. The company expects full-year equipment sales to increase 3-5% and net income to reach around $1.7 billion. Strong global demand for crops is driving the agricultural sector, though rising energy costs are negatively impacting farm incomes in the near term.
ATHLETE WEAR COMPANY CASE STUDY (75 Marks) Athlete Wear Co. is an Irish sports clothing manufacturer for elite amateur and professional athletes. It has recently seen a decline in profitability owing to increased competition from low cost mass production manufacturers and has been outbid for contracts as official clothing supplier for three major international and domestic sporting events. As a result, Athlete Wear is faced with having to suspend its operations immediately unless it can find alternative markets to ensure the business can r
- Black & Decker reported third quarter 2006 earnings per share from continuing operations of $1.74, a 3% increase over the prior year. Sales increased 2% to $1.6 billion.
- Free cash flow for the quarter was $183 million and $320 million year-to-date, an increase of $130 million versus the first nine months of 2005.
- The company repurchased 6.1 million shares in the quarter and increased its share repurchase authorization by 3 million shares. It also declared a quarterly dividend of $0.38 per share.
- Total expenses for Duke Energy North America were $325 million for the first half of 2004, driven by operations and maintenance costs of $161 million and depreciation of $86 million.
- Reported segment EBIT was negative $596 million due to special items including a $361 million loss on the sale of southeast generation assets and $105 million settlement related to the western energy market.
- Reconciliations between quarterly reports and additional financial disclosures show reclassifications between various expense categories but no changes to the overall EBIT amounts.
Duke Energy held an earnings conference call to discuss its first quarter 2005 results. The call included prepared remarks from Duke Energy's Chairman and CEO, Group VP and CFO, and President and COO. They reported earnings of $0.91 per share including special items, and ongoing earnings of $0.44 per share, up nearly 30% from the prior year. Business unit highlights included strong results from Field Services, International Energy, and Crescent Resources. DENA reported a smaller loss than the prior year. The executives provided an outlook for the remainder of 2005 and discussed the impact of recent transactions involving Duke Energy's ownership in Field Services.
The document provides an earnings review for 2004 and outlook for 2005 from Duke Energy Corporation. Some key points:
- 2004 ongoing earnings per share were $1.38, exceeding the target of $1.20. Several business units performed well while DENA losses were lower than expected.
- Goals for 2005 include ongoing earnings per share of $1.60, ongoing segment EBIT growth across most business units, and further reducing debt and risks.
- DENA is expected to post a $150 million ongoing segment EBIT loss for 2005 as it focuses on defining a sustainable long-term business model.
Duke Energy reported financial results for the full year and fourth quarter of 2003. Key highlights include:
1) Regulated utilities and field services showed strong operational and financial performance, while merchant operations produced a loss.
2) Duke Energy exceeded its targets for non-strategic asset sales of over $2 billion and debt reduction of $2.2 billion.
3) Special pre-tax charges of $3.4 billion were taken in the fourth quarter to reduce exposure to merchant generation and international businesses.
4) Annual dividend was maintained at $1.10 per share and debt reduction between $3.5-4 billion is expected in 2004 to strengthen the company's financial position.
Duke Energy reported ongoing earnings of $818 million for the second quarter of 2004, excluding special items. However, including special items, reported earnings were $835 million. Special items included a $17 million gain primarily due to a California settlement and asset sale gains, partially offset by impairment charges. Segment earnings were lower than ongoing earnings primarily due to mild weather and higher planned maintenance costs, but were partially offset by higher bulk power sales and customer growth.
Duke Energy reported higher earnings per share in the first quarter of 2005 compared to the previous year. Earnings per share were $0.91 versus $0.34 in 2004, driven by gains from the sale of assets in the Field Services business and improved performance across most business units. Interest expense was lower due to debt reduction efforts. Duke Energy will hold an earnings call to discuss the results and outlook further.
Duke Energy reported second quarter 2003 earnings per share of $0.46, including $0.16 from asset sales. Performance was impacted by cooler weather reducing electricity demand. Total first half 2003 earnings were $0.71 per share, including a $0.18 accounting change charge. Duke exceeded its $1.5 billion asset sale target and expects full-year earnings between $1.35-$1.60 per share.
CMC has extensive experience executing large IT projects for Indian Railways. Key projects include IMPRESS for computerized passenger reservation, FOIS for freight management, and ARTS for unreserved ticketing. These projects required developing robust, scalable solutions; implementing across thousands of remote locations; and ensuring high uptime. CMC successfully delivered complex turnkey projects for Indian Railways on time by developing secure, reliable systems using multiple technology platforms.
This document contains the prepared remarks and Q&A from Duke Energy's third quarter 2003 earnings conference call on October 30, 2003. Rick Priory, then-CEO of Duke Energy, noted that third quarter results were below expectations due to challenges faced by the DENA business segment. Duke Energy reported GAAP earnings of $0.05 per share and ongoing earnings of $0.35 per share for the quarter, excluding special items. Priory discussed cost reduction efforts that would yield over $200 million in annual pre-tax savings. CFO Robert Brace provided additional details on segment results and $0.30 per share in special items recorded in the quarter.
Cinergy Corp. reported strong financial results for the fourth quarter and full year of 2005. Net income for Q4 2005 was $190 million compared to $146 million for Q4 2004. For the full year, net income was $490 million compared to $401 million in 2004. Earnings per share on a diluted basis were $0.95 for Q4 2005 and $2.46 for the full year, up from $0.79 and $2.18 respectively in the previous year. The improved results were driven by higher demand, solid performance in commercial businesses, and constructive regulatory recovery.
Cinergy reported net income of $117 million for Q1 2005, compared to $103 million for Q1 2004. Earnings per share were $0.60 compared to $0.57 the previous year. The Regulated Businesses segment contributed $0.39 per share while the Commercial Businesses segment contributed $0.23 per share. Cinergy reaffirmed its 2005 earnings guidance of $2.70 to $2.85 per share, excluding mark-to-market impacts.
The Timken Company reported strong financial results for the first quarter of 2006, with record sales and increased net income compared to the first quarter of 2005. Net income grew 13% while earnings per share increased 11%. All three of the company's business segments - Industrial, Automotive, and Steel - performed well. The company also increased its full-year 2006 earnings guidance and expects continued strength in industrial markets and margin improvement across its business segments for the remainder of the year.
The Timken Company reported record sales and earnings for 2004. Sales increased 19% to $4.5 billion compared to 2003, while net income increased 271% to $135.7 million. The company achieved strong growth through leveraging higher demand, price increases to offset raw material costs, and continued integration savings from the Torrington acquisition. For 2005, the company expects continued sales and earnings growth, driven by ongoing productivity improvements and recovery of material costs despite some moderation in automotive markets.
Goodrich Corporation announced strong financial results for the second quarter of 2005 and increased its full year 2005 outlook. Net income for Q2 2005 was $76 million, up 91% from the previous year. Sales increased 20% to $1.353 billion. The company increased its full year 2005 outlook for sales to $5.2-5.3 billion and net income per share to $2.00-$2.10. The improved results were driven by growth in commercial aerospace, defense, and all other market channels. Management attributed the performance to the commercial aerospace upturn and strong demand for defense products.
Goodrich Corporation announced strong financial results for the second quarter of 2005 and increased its full year 2005 outlook. Net income for Q2 2005 was $76 million, up 91% from the previous year. Sales increased 20% to $1.353 billion. The company increased its full year 2005 outlook for sales to $5.2-5.3 billion and net income per share to $2.00-$2.10. The improved results were driven by growth in commercial aerospace, defense, and all other market channels. Management attributed the performance to the commercial aerospace upturn and strong demand for defense products.
Goodrich Corporation announced a 20% increase in third quarter 2005 net income per diluted share compared to third quarter 2004. Third quarter 2005 sales increased 18% year-over-year to $1.37 billion. The company expects full-year 2005 sales to reach approximately $5.3 billion and net income per diluted share to be in the range of $2.00-$2.10, representing a 40-47% increase over 2004. The company also provided details on key business highlights and outlooks for 2005 and 2006.
Goodrich Corporation announced a 20% increase in third quarter 2005 net income per diluted share compared to third quarter 2004. Third quarter 2005 sales increased 18% year-over-year to $1.37 billion. The company expects full-year 2005 sales to reach approximately $5.3 billion and net income per diluted share to be in the range of $2.00-$2.10, representing a 40-47% increase over 2004. The company also provided details on key business highlights and outlooks for 2005 and 2006.
Northrop Grumman reported financial results for the third quarter of 2006 with the following highlights:
1) Contract acquisitions increased 25% to $6.3 billion and all business segments ended with higher backlog than the previous year.
2) Sales increased 2% to $7.4 billion while segment operating margin increased 43% to $696 million.
3) Earnings per share from continuing operations rose 9% to $0.87, though this included a $0.20 per share legal provision.
3) The company provided guidance for 2006 with sales of $30.2 billion and earnings per share of $4.20 to $4.25, and provided initial guidance
DTE Energy reported strong third quarter 2006 earnings of $188 million compared to $4 million in third quarter 2005. Operating earnings, which exclude non-recurring items, were $255 million in third quarter 2006 compared to $5 million in third quarter 2005. All of DTE Energy's business segments experienced increased operating earnings except for Gas Utility which typically has a seasonal loss in the third quarter. DTE Energy tightened its full year 2006 operating earnings guidance excluding synthetic fuels to be between $2.42 to $2.53 per share.
- YRC Worldwide reported record quarterly revenue of $2.57 billion, up 3.2% from the third quarter of 2005. Adjusted quarterly earnings per share were $1.72, up 12% from the prior year.
- For the first nine months of 2006, revenue was $7.51 billion, up 20% from the same period in 2005. Adjusted diluted EPS was $4.06 compared to $3.88 the previous year.
- The company expects full year 2006 EPS between $5.45-$5.55 and revenue of approximately $10 billion.
- YRC Worldwide reported record quarterly revenue of $2.57 billion, up 3.2% from the third quarter of 2005. Adjusted quarterly earnings per share were $1.72, up 12% from the prior year.
- For the first nine months of 2006, revenue was $7.51 billion, up 20% from the same period in 2005. Adjusted diluted EPS was $4.06 compared to $3.88 the previous year.
- The company expects full year 2006 EPS between $5.45-$5.55 and revenue of approximately $10 billion.
- YRC Worldwide reported record revenue and operating income for 2005, with adjusted EPS of $5.28, up 33% from 2004.
- For Q4 2005, revenue was $2.48 billion, up 40% from Q4 2004, with adjusted operating income of $152 million, up 42% from Q4 2004.
- Segment highlights included record revenue and operating income for Yellow Transportation and improved operating ratios for Roadway Express and YRC Regional Transportation.
- For 2006, the company expects EPS between $6.15-$6.30 and consolidated revenue of about $10 billion.
Southern Company reported higher than expected earnings for the 4th quarter and full year of 2004. Earnings for the 4th quarter were $204.5 million compared to $125 million in 2003. For the full year, earnings were $1.53 billion compared to $1.47 billion in 2003. Strong economic growth in the Southeast contributed to increased electricity sales and better than expected results. Looking ahead, Southern Company expects earnings per share growth of 5% annually and provided guidance of $2.04-$2.09 per share for 2005.
DTE Energy reported a loss for the second quarter of 2006 compared to a profit in the same period in 2005. Operating earnings, which exclude non-recurring items, were down slightly from the prior year. The company maintained its full-year 2006 earnings guidance despite pressure from high oil prices impacting its synfuel operations. Capital investment projects across its utility and non-utility businesses remained on track.
DTE Energy reported a loss for the second quarter of 2006 compared to earnings in the same period in 2005. Operating earnings excluding special items were nearly break-even, with higher earnings from the electric utility offset by losses in other segments due to oil hedging costs and falling natural gas prices. Despite the quarterly loss, DTE maintained its full-year 2006 earnings guidance. Capital investment continued across all business segments to improve operations and support growth.
fpl group library.corporate-4Q08%20 Script_FINAL%20_APfinance17
FPL Group held a conference call to discuss its financial results for the fourth quarter and full year of 2008. The call began with introductions from senior management. Lew Hay, the CEO, then provided an overview of FPL Group's performance in 2008, highlighting record adjusted earnings of over $1.5 billion. Armando Pimentel, the CFO, discussed the financial results in more detail, noting lower than expected earnings for Florida Power & Light due to the economic downturn. Pimentel provided analysis of FPL's customer growth, usage, and other key operating metrics for the quarter and year.
Goodrich Corporation announced strong third quarter 2006 results with net income per diluted share growth of 63% and provided an updated full year 2006 outlook and initial outlook for 2007. Key highlights included:
- Third quarter 2006 sales increased 5% to $1.4 billion and net income per share was $0.80, up 63% over third quarter 2005.
- Full year 2006 sales outlook tightened to a range of $5.8-5.85 billion and net income per share outlook increased to $3.65-3.70, reflecting tax settlements.
- For 2007, sales are expected to increase 6-7% to a range of $6.1-6.3 billion and net income per share
Goodrich Corporation announced strong third quarter 2006 results with net income per diluted share growth of 63% and provided an updated full year 2006 outlook and initial outlook for 2007. Key highlights included:
- Third quarter 2006 sales increased 5% to $1.4 billion and net income per share was $0.80, up 63% over third quarter 2005.
- Full year 2006 sales outlook tightened to a range of $5.8-5.85 billion and net income per share outlook increased to $3.65-3.70, reflecting tax settlements.
- For 2007, sales are expected to increase 6-7% to a range of $6.1-6.3 billion and net income per share
The Timken Company reported record sales and net income for the first quarter of 2005. Sales increased 19% to $1.3 billion compared to the same period last year, driven by strong industrial demand. Net income doubled to $58.2 million compared to $28.5 million last year. Earnings per share also doubled to $0.63 per share. The Industrial and Steel Groups saw significant earnings growth while the Automotive Group had a loss due to higher raw material costs and lower North American auto production. For the full year, Timken expects earnings per share between $2.05 to $2.20, excluding special items.
ConAgra Foods is selling its chicken business to focus on branded and value-added food items. The sale includes chicken processing operations and will generate cash for ConAgra to reinvest. ConAgra will receive Class A shares in Pilgrim's Pride, the chicken company acquiring its business, representing 7% of voting shares and 49% of equity. It can sell up to 1/3 of these shares annually but expects to reduce ownership over time based on market conditions. ConAgra will also receive notes from Pilgrim's Pride due in 2011 with a 10.5% interest rate to be paid semi-annually.
This document summarizes the Q1 FY2004 earnings results of a large packaged foods company. Key points include:
- Q1 EPS was $0.37 compared to $0.43 in Q1 FY2003, impacted by various one-time gains and losses.
- Packaged foods sales were down $168M excluding divested businesses, with a 5% volume decline.
- Several major brands saw growth, while others like Butterball declined.
- Corporate expenses increased due to litigation expenses from a past joint venture.
- The effective tax rate for FY2004 is estimated at 38%.
ConAgra Foods is selling its United Agri Products business to focus on branded and value-added products, as part of a broader strategy of divesting non-core businesses over the past year including fresh beef/pork, canned seafood, and cheese operations. The sale is expected to close by December 31, 2003 for cash and $60-75 million in preferred stock. ConAgra will retain some international UAP operations generating $250 million in annual sales, concentrated in several countries. Proceeds will be used for debt paydown and general corporate purposes including acquisitions and stock buybacks.
ConAgra Foods divested its poultry business to focus on branded, value-added foods with strong margins and growth. The $300 million cash and 25 million Pilgrim's Pride shares valued at $245 million totaled less than the poultry business' estimated $545 million book value due to the shares being valued based on past prices, not current prices. ConAgra Foods can sell up to 1/3 of the shares each year and account for shares eligible for resale within a year as securities, and other shares using cost accounting. The poultry business was previously reported in Meat Processing but is now in Discontinued Operations.
ConAgra Foods completed the divestiture of its chicken processing and crop inputs businesses, finalizing its strategy to focus on branded, value-added food opportunities. The company received $300 million in cash and 25 million shares of Pilgrim's Pride stock worth $245 million for the chicken business. ConAgra can sell up to 1/3 of the Pilgrim's Pride shares per year and will account for the shares as securities held for resale within one year or using the cost method if the eligibility for resale is over one year away. The chicken business was previously reported as part of ConAgra's Meat Processing segment but is now in Discontinued Operations.
ConAgra Foods has divested several commodity businesses and acquired branded and value-added food products to focus on higher margin businesses. The company is planning a share repurchase program using cash from strong operating cash flows and recent divestitures. ConAgra expects to continue investing in growth through acquisitions and paying down debt while deploying cash to dividends, debt repayment, and share repurchases as appropriate.
The document provides a Q&A summary of ConAgra Foods' financial results for Q2 FY04 compared to Q2 FY03. Key points include:
- Q2 FY04 diluted EPS was $0.51 compared to $0.44 in Q2 FY03, impacted by $0.04 in discontinued operations in FY04 and $0.03 in divestiture expenses in FY03.
- Sales comparability was impacted by $506M in divested fresh meat businesses in FY03 and $154M in divested canned food businesses in FY03.
- Examples of brand sales growth included Banquet, Chef Boyardee, Egg Beaters
Packaged Foods sales increased 4% excluding divestitures, with 2% volume growth. Several brands posted sales growth including Armour, Banquet, and Blue Bonnet, while others like ACT II and Butterball declined. Sales comparability was affected by $155 million in divested businesses last year. Operating profit grew 5% in Packaged Foods and 10% overall when adjusting for divested businesses and cost savings initiatives. The company is implementing cost cutting measures expected to save more than implementation costs in the future.
The document provides the quarterly and annual financial results for a company. Some key highlights include:
- Several consumer brands posted sales growth for the quarter including Banquet, Blue Bonnet, and Chef Boyardee, while others like ACT II and Eckrich saw declines.
- Total depreciation and amortization was around $93 million for the quarter and $352 million for the fiscal year.
- Capital expenditures were around $106 million for the quarter and $352 million for the fiscal year.
- Net interest expense was $80 million for the quarter and $275 million for the fiscal year.
- Corporate expenses were around $95 million for the quarter and $342 million
- Major brands in the Retail Products segment that posted sales growth included ACT II, Armour, Banquet, and Blue Bonnet. Brands that posted sales declines included Healthy Choice, Slim Jim, and Snack Pack.
- Retail volume increased 8% while foodservice volume was flat excluding divested businesses.
- Increased input costs negatively impacted operating profits in the Retail Products segment by approximately $45 million.
- Capital expenditures were approximately $105 million, reflecting increased investment in information systems.
This document contains the questions and answers from ConAgra Foods' Q2 FY2005 earnings call. Some key details include:
- Several major brands in the Retail Products segment posted sales growth, while others saw declines.
- Retail volume increased 7% and Foodservice volume decreased 1% excluding divested businesses.
- Capital expenditures increased significantly year-over-year due to investments in information systems.
- The company received proceeds from the sale of its minority interest in Swift Foods and shares of Pilgrim's Pride stock.
This document summarizes the Q3 2005 earnings results of a major food company. Some key highlights include: 1) Major brands in the Retail Products segment saw mixed sales results, with growth for brands like Chef Boyardee but declines for brands like Butterball. 2) Unit volumes declined 3% for Retail Products but increased 4% for Foodservice Products. 3) The packaged meats operations were slightly profitable but profits were over $45 million lower than the previous year. The company expects some improvement but not year-over-year profit gains for packaged meats in Q4.
This document summarizes ConAgra Foods' earnings results for fiscal year 2005 (FY05) in a question and answer format. Some key details include:
- FY05 diluted EPS was $1.23, including $0.12 in expenses that impacted comparability.
- Major brands in the Retail Products segment that saw sales growth included ACT II, Banquet, and Blue Bonnet. Brands that saw declines included Armour and Butterball.
- Retail Products volume increased 2% while Foodservice Products volume decreased 2% in Q4.
- Total depreciation and amortization was approximately $351 million for FY05 and $90 million for Q4. Capital expenditures
The document provides the questions and answers from the Q1 FY06 earnings call for ConAgra Foods. Some key details from the summary include:
- Sales grew for major brands like Butterball but declined for brands like ACT II. Retail Products volume declined 3% while Foodservice increased 4%.
- Depreciation and amortization was $89 million. Capital expenditures were $71 million and net interest expense was $68 million. Corporate expense was $73 million.
- Gross margin was 21.6% and operating margin was 10.9%. The effective tax rate for FY06 is estimated to be 36%.
Major brands in the Retail Products segment that posted sales growth included ACT II, Blue Bonnet, Butterball, Kid Cuisine, Marie Callender's, Reddi-wip and Ro*Tel. Brands that posted sales declines included Armour, Banquet, Cook's, DAVID, Eckrich, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, LaChoy, Orville Redenbacher, PAM, Parkay, Peter Pan, Slim Jim, Snack Pack, Swiss Miss, Van Camp's and Wesson. Retail Products volume declined 5% for the quarter while Foodservice Products volume increased 2%. Corporate expense for the quarter was approximately $103 million
The document provides financial information from ConAgra Foods' Q3 FY06 quarterly earnings call. Some key details include:
- Retail segment sales grew 4% and Foodservice grew 1% over the prior year. Several major brands posted sales growth while others declined.
- Gross margin was 24.8% and operating margin was 12.5% for the quarter.
- Net debt was $3.6 billion, down from $4.5 billion a year prior due to debt repayment of $500 million during the quarter.
- Capital expenditures for the quarter and fiscal year-to-date were below prior year levels. Projected fiscal year expenditures are up to $400
- Major brands in the Consumer Foods segment that posted sales growth in Q4 FY06 included Blue Bonnet, Chef Boyardee, DAVID, Egg Beaters, Hebrew National, and Hunt's. Brands that posted sales declines included ACT II, Banquet, Healthy Choice, Peter Pan, Slim Jim, Snack Pack, and Van Camp's.
- Consumer Foods volume declined 2% in Q4 while Food and Ingredients volume increased 1%.
- Total depreciation and amortization for Q4 was approximately $85 million and approximately $353 million for all of FY06. Capital expenditures were approximately $92 million for Q4 and $288 million for FY
This document summarizes the Q1 FY07 financial results of ConAgra Foods. Some key highlights include:
- Consumer Foods volume increased 1% and Food and Ingredients volume increased 2% in Q1.
- Gross margin was 24.7% and operating margin was 11.7% for the quarter.
- Net debt decreased to $2.88 billion from $3.97 billion in Q1 FY06.
- Restructuring charges totaled $39 million pre-tax, impacting costs in Consumer Foods and corporate expenses.
Major brands in the Consumer Foods segment that posted sales growth included Egg Beaters, Healthy Choice, and Slim Jim. Brands that posted sales declines included ACT II and Blue Bonnet. Total depreciation and amortization from continuing operations was $88 million for the quarter and $177 million year-to-date. Capital expenditures were $66 million for the quarter and $111 million year-to-date. Net interest expense was $52 million for the quarter and $110 million year-to-date.
1) Several major brands in the Consumer Foods segment posted sales growth for the quarter, while others like ACT II and Banquet saw declines. Overall, Consumer Foods volume declined 1% excluding divested businesses.
2) Total depreciation and amortization from continuing operations was around $91 million for the quarter and $268 million year-to-date. Capital expenditures were around $147 million for the quarter and $258 million year-to-date.
3) The company's net debt at the end of the quarter was around $3 billion, with a net debt to total capital ratio of 39%.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
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Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
1. N E W S R E L E A S E Cinergy Corp.
139 East Fourth Street
P.O. Box 960
Cincinnati, OH 45201-0960
News contact: Steve Brash 513-287-2226 (w) 513-543-7489 (c)
Angeline Protogere 317-838-1338 (w) 317-367-3306 (p)
Investor contact: Brad Arnett 513-287-3024
Web site: www.cinergy.com
FOR IMMEDIATE RELEASE – OCTOBER 27, 2005
CINERGY REPORTS STRONG EARNINGS FOR THE THIRD QUARTER
RAISES 2005 EARNINGS GUIDANCE
Webcast of Analyst Conference Call Scheduled Today for 9:00 a.m. EDT on Cinergy.com
CINCINNATI – Cinergy Corp. (NYSE:CIN) today reported net income for the third quarter of
2005 of $132 million, or $0.66 per share on a diluted basis, compared with net income of $93
million, or $0.50 per share on a diluted basis for the third quarter of 2004.
Excluding the impacts of certain adjustments described below, adjusted earnings for the third
quarter of 2005 were a record $0.97 per share, compared with $0.65 per share for the third
quarter of 2004.
“The $0.97 per share of adjusted earnings represents Cinergy’s best quarter ever, and we’re
pleased that this success was driven by many strong performances across our company,” said
James E. Rogers, chairman and chief executive officer. “While we benefited from very
favorable weather, I’m also extremely proud of the way our employees have worked to drive
costs out of our businesses, while at the same time operating and maintaining our entire system
so that we met the challenges of a very hot summer.”
Cooling degree days during the quarter were almost 30 percent above normal and about 68
percent above last year. In July, customers of the Cinergy operating companies set a new
record peak demand for electricity of 12,001 megawatts (MW), breaking the old record of
11,305 MW set in August 2002 by more than 6 percent.
“Our commercial businesses delivered a solid contribution this quarter by capitalizing on
commodity market price movements,” said Rogers. “In particular, the recent steps we’ve taken
to strengthen our commercial gas business placed them in a position to profitably participate in
an extraordinary period of gas price volatility.”
1
2. Unaudited consolidated statements of income for the quarter and year-to-date ended
September 30, 2005 and 2004, and unaudited consolidated balance sheets as of September
30, 2005 and December 31, 2004 can be found in Schedules 1 and 2, respectively, of this
release.
Earnings Adjustments
Cinergy uses adjusted earnings internally for analysis of performance and for reporting results
to the Board of Directors to provide a more meaningful representation of Cinergy’s fundamental
earnings power. The company also uses adjusted earnings when communicating its earnings
outlook to analysts and investors.
Reported earnings for the third quarter of 2005 were negatively impacted by ($0.27) per share
resulting from the recognition of a net unrealized mark-to-market loss on gas, fuel and power
contracts that hedge our gas storage and generation portfolios. These contracts, which are
economic hedges, do not meet the accounting requirements to qualify for accrual accounting.
Reported earnings for the quarter were also reduced by ($0.04) per share for severance
payments and certain costs incurred in connection with the proposed merger with Duke Energy
announced in May 2005.
In 2004, reported earnings were impacted in the third quarter by losses from similar unrealized
mark-to-market adjustments of ($0.07) per share and by charges of ($0.08) per share for
implementation costs relating to the company’s “CIN-10” continuous improvement initiative and
the write-down or disposal of certain investments.
Reconciliations of the items above, which are included in reported earnings as determined in
accordance with generally accepted accounting principles (GAAP) but excluded from adjusted
earnings, can be found in Schedules 3 and 4 of this release.
Business Segment Results
The Regulated Businesses segment reported adjusted earnings of $0.48 per share in the third
quarter of 2005 compared with adjusted earnings of $0.32 per share in the same period of
2004. The increase in earnings was primarily due to increased sales to retail customers
resulting from warmer than normal summer weather.
2
3. Third quarter adjusted earnings from the Commercial Businesses segment were $0.49 per
share in 2005 compared with adjusted earnings of $0.34 per share from a year earlier. The
increase in earnings was primarily due to weather and higher margins realized from portfolio
optimization activities, gas marketing and trading activities and generation assets serving Ohio
commercial and industrial customers.
Adjusted earnings for the Power Technology and Infrastructure Services segment were flat, or
$0.00 per share, for the third quarter of 2005, as compared to an adjusted ($0.01) per share
loss from the prior year.
Complete details of third quarter and year-to-date 2005 results compared to 2004 can be found
in Schedules 5 through 8 of this release.
Earnings Guidance
After taking into consideration the strong results from the third quarter, the company is
increasing its previously issued earnings guidance for 2005 to a range of $2.60 to $2.75 per
share on an adjusted basis. GAAP earnings for 2005 are expected to be in the range of $2.15
to $2.30 per share.
Other Activities
Cinergy and Duke Energy continue to make progress in the regulatory approval process
associated with their proposed merger announced in May 2005. The companies have received
early termination from the U.S. Department of Justice and Federal Trade Commission of the
waiting period imposed by the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Settlements with intervening parties have been reached in state regulatory proceedings in
Kentucky and South Carolina, where the agreements are being reviewed by state regulators.
Negotiations are proceeding in Indiana, Ohio and North Carolina. Cinergy and Duke expect to
file an amended joint proxy statement/prospectus, which will include third quarter 2005 pro
forma financial information for the companies, with the Securities and Exchange Commission in
December and to hold their respective special meeting of shareholders in February 2006.
3
4. In the third quarter, Cinergy was named for the third straight year to the Dow Jones World
Sustainability Indexes, an international benchmark for excellence in social, economic and
environmental leadership. The company was one of only two U.S. utilities to be selected to the
Indexes. The World Indexes cover the top ten percent of the 2,500 largest companies in the
world, providing asset managers with objective benchmarks to manage sustainability portfolios.
Cinergy is also the only U.S. utility to be named to the FTSE4Good Index Series, an investment
tool launched in 2001 for those interested in socially responsible investment. FTSE Group,
jointly owned by the Financial Times and the London Stock Exchange, is an independent
company whose sole business is the creation and management of indices and associated data
services.
In August, PSI Energy completed the acquisition of the 512-megawatt Wheatland generating
facility for approximately $100 million from subsidiaries of Allegheny Energy, Inc. Located in
Knox County, Ind., Wheatland has four natural gas-fired simple cycle combustion turbines and
is directly connected to the Cinergy transmission system. Its output will be used to bolster the
reserve margins on the PSI system. The Indiana Utility Regulatory Commission has authorized
PSI to defer post-in-service carrying costs and depreciation related to the facility.
Cinergy Corp. has a balanced, integrated portfolio consisting of two core businesses: regulated
operations and commercial businesses. Cinergy’s regulated public utilities in Ohio, Indiana, and
Kentucky serve 1.5 million electric customers and about 500,000 gas customers. In addition, its
Indiana regulated company owns 7,000 megawatts of generation. Cinergy’s competitive
commercial businesses have 6,300 megawatts of generating capacity with a profitable balance
of stable existing customer portfolios, new customer origination, marketing and trading, and
industrial-site cogeneration. Cinergy’s integrated businesses make it a Midwest leader in
providing both low-cost generation and reliable electric and gas service.
Forward-Looking Statements
This document includes statements that do not directly or exclusively relate to historical facts. Such
statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include
statements regarding benefits of the proposed mergers and restructuring transactions, integration plans
and expected synergies, anticipated future financial operating performance and results, including
estimates of growth. These statements are based on the current expectations of management of Duke
4
5. Energy and Cinergy. There are a number of risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements included in this document. For example, (1) the
companies may be unable to obtain shareholder approvals required for the transaction; (2) the
companies may be unable to obtain regulatory approvals required for the transaction, or required
regulatory approvals may delay the transaction or result in the imposition of conditions that could have a
material adverse effect on the combined company or cause the companies to abandon the transaction;
(3) conditions to the closing of the transaction may not be satisfied; (4) problems may arise in
successfully integrating the businesses of the companies, which may result in the combined company not
operating as effectively and efficiently as expected; (5) the combined company may be unable to achieve
cost-cutting synergies or it may take longer than expected to achieve those synergies; (6) the transaction
may involve unexpected costs or unexpected liabilities, or the effects of purchase accounting may be
different from the companies’ expectations; (7) the credit ratings of the combined company or its
subsidiaries may be different from what the companies expect; (8) the businesses of the companies may
suffer as a result of uncertainty surrounding the transaction; (9) the industry may be subject to future
regulatory or legislative actions that could adversely affect the companies; and (10) the companies may
be adversely affected by other economic, business and/or competitive factors. Additional factors that may
affect the future results of Duke Energy and Cinergy are set forth in their respective filings with the
Securities and Exchange Commission (quot;SECquot;), which are available at www.duke-energy.com/investors
and www.cinergy.com/investors, respectively. Duke Energy and Cinergy undertake no obligation to
publicly update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise.
Additional Information and Where to Find It
In connection with the proposed transaction, a registration statement of Duke Energy Holding Corp.
(Registration No. 333-126318), which includes a preliminary prospectus and a preliminary joint proxy
statement of Duke Energy and Cinergy, and other materials have been filed with the SEC and are
publicly available. WE URGE INVESTORS TO READ THE DEFINITIVE JOINT PROXY STATEMENT-
PROSPECTUS WHEN IT BECOMES AVAILABLE AND THESE OTHER MATERIALS CAREFULLY
BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT DUKE ENERGY, CINERGY, DUKE
ENERGY HOLDING CORP. AND THE PROPOSED TRANSACTION. Investors will be able to obtain free
copies of the joint proxy statement-prospectus as well as other filed documents containing information
about Duke Energy and Cinergy at http://www.sec.gov, the SEC’s Web site. Free copies of Duke
Energy’s SEC filings are also available on Duke Energy’s Web site at http://www.duke-
energy.com/investors/, and free copies of Cinergy’s SEC filings are also available on Cinergy’s Web site
at http://www.cinergy.com.
Participants in the Solicitation
Duke Energy, Cinergy and their respective executive officers and directors may be deemed, under SEC
rules, to be participants in the solicitation of proxies from
Duke Energy’s or Cinergy’s stockholders with respect to the proposed transaction. Information regarding
the officers and directors of Duke Energy is included in its definitive proxy statement for its 2005 annual
meeting filed with the SEC on March 31, 2005. Information regarding the officers and directors of Cinergy
is included in its definitive proxy statement for its 2005 annual meeting filed with the SEC on March 28,
2005. More detailed information regarding the identity of potential participants, and their direct or indirect
interests, by securities, holdings or otherwise, will be set forth in the registration statement and proxy
statement and other materials to be filed with the SEC in connection with the proposed transaction.
###
5
6. Schedule 1
CINERGY CORP.
CONSOLIDATED STATEMENTS OF INCOME
For the Periods Ended September 30, 2005 and 2004
(unaudited)
(dollars in thousands, except per share amounts)
Quarter Ended Year To Date
2005 2004 2005 2004
Operating Revenues
Electric $1,134,494 $952,406 $2,975,129 $2,681,078
Gas 84,073 65,298 476,767 524,226
Other 146,712 110,879 371,895 265,674
Total Operating Revenues 1,365,279 1,128,583 3,823,791 3,470,978
Operating Expenses
Fuel, emission allowances and purchased power 459,964 341,218 1,077,641 933,864
Gas purchased 30,446 19,792 295,135 290,728
Costs of fuel resold 118,619 86,917 297,469 203,441
Operation and maintenance 342,221 325,787 1,025,131 968,981
Depreciation 129,597 114,668 386,537 333,856
Taxes other than income taxes 65,101 57,001 209,115 204,320
Total Operating Expenses 1,145,948 945,383 3,291,028 2,935,190
Operating Income 219,331 183,200 532,763 535,788
Equity in Earnings of Unconsolidated Subsidiaries 6,795 8,016 25,206 18,095
Miscellaneous Income (Expense) - Net 17,012 (944) 33,886 (11,419)
Interest Expense 76,932 71,775 209,644 209,446
Preferred Dividend Requirements of Subsidiaries 603 858 2,319 2,574
Income Before Taxes 165,603 117,639 379,892 330,444
Income Taxes 33,666 24,716 79,891 76,002
Net Income $131,937 $92,923 $300,001 $254,442
Average Common Shares Outstanding - Basic 199,069 180,881 197,741 180,129
Earnings Per Common Share - Basic $0.67 $0.51 $1.52 $1.41
Average Common Shares Outstanding - Diluted 200,167 183,478 198,777 182,564
Earnings Per Common Share - Diluted $0.66 $0.50 $1.51 $1.39
Cash Dividends Declared Per Common Share $0.96 $0.47 $1.92 $1.41
Note: Prior year data has been reclassified to conform with current year presentation.
7. Schedule 2
CINERGY CORP.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
September 30 December 31
2005 2004
ASSETS
Current Assets
Cash and cash equivalents $165,831 $164,541
Notes receivable, current 81,622 214,513
Accounts receivable less accumulated provision
for doubtful accounts of $4,489 at September 30, 2005,
and $5,514 at December 31, 2004 1,482,068 1,061,140
Fuel, emission allowances, and supplies 607,925 444,750
Prepayments and other 567,113 174,624
Energy risk management current assets 1,260,255 381,146
Total current assets 4,164,814 2,440,714
Property, Plant, and Equipment - at Cost
Utility plant in service 10,642,931 10,076,468
Construction work in progress 398,130 333,687
Total utility plant 11,041,061 10,410,155
Non-regulated property, plant, and equipment 4,853,947 4,700,009
Accumulated depreciation 5,447,931 5,180,699
Net property, plant, and equipment 10,447,077 9,929,465
Other Assets
Regulatory assets 1,021,277 1,030,333
Investments in unconsolidated subsidiaries 486,795 513,675
Energy risk management non-current assets 397,471 138,787
Notes receivable, non-current 177,127 193,857
Other investments 128,581 125,367
Goodwill and intangible assets 152,342 132,752
Restricted funds held in trust 277,400 358,006
Other 213,323 119,361
Total other assets 2,854,316 2,612,138
Total Assets $17,466,207 $14,982,317
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $2,142,077 $1,348,576
Accrued taxes 266,459 216,804
Accrued interest 69,504 54,473
Notes payable and other short-term obligations 1,198,670 958,910
Long-term debt due within one year 349,012 219,967
Energy risk management current liabilities 1,419,332 310,741
Other 141,448 171,188
Total current liabilities 5,586,502 3,280,659
Non-current Liabilities
Long-term debt 4,022,076 4,227,741
Deferred income taxes 1,445,371 1,597,120
Unamortized investment tax credits 93,070 99,723
Accrued pension and other postretirement benefit costs 652,409 688,277
Regulatory liabilities 578,520 557,419
Energy risk management non-current liabilities 420,326 127,340
Other 195,230 225,298
Total non-current liabilities 7,407,002 7,522,918
Total Liabilities 12,993,504 10,803,577
Cumulative Preferred Stock of Subsidiaries
Not subject to mandatory redemption 31,743 62,818
Common Stock Equity
Common stock - $0.01 par value; authorized shares - 600,000,000;
issued shares - 199,280,386 at September 30, 2005 and 187,653,506
at December 31, 2004; outstanding shares - 199,139,968 at
September 30, 2005 and 187,524,229 at December 31, 2004 1,993 1,877
Treasury shares at cost - 140,418 at September 30, 2005, (4,776) (4,336)
and 129,277 shares at December 31, 2004
Paid-in capital 2,969,103 2,559,715
Retained earnings 1,534,752 1,613,340
Accumulated other comprehensive income (loss) (60,112) (54,674)
Total common stock equity 4,440,960 4,115,922
Total Liabilities and Equity $17,466,207 $14,982,317
Note: Prior year data has been reclassified to conform with current year presentation.
8. Schedule 3
CINERGY CORP.
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS - 2005
(unaudited)
Q1 Q2 Q3 Total
Regulated Businesses
EPS As Reported $ 0.39 $ 0.24 $ 0.46 $ 1.09
Special Items:
Merger and Severance Costs - 0.03 0.02 0.05
EPS Adjusted $ 0.39 $ 0.27 $ 0.48 $ 1.14
Commercial Businesses
EPS As Reported $ 0.23 $ 0.02 $ 0.20 $ 0.45
Special Items:
Merger and Severance Costs - 0.03 0.02 0.05
Mark-to-Market Effect on Asset Hedges* 0.12 0.04 0.27 0.43
EPS Adjusted $ 0.35 $ 0.09 $ 0.49 $ 0.93
Power Technology & Infrastructure Services
EPS As Reported $ (0.02) $ (0.01) $ - $ (0.03)
Special Items:
Merger and Severance Costs $- 0.01 $ - $ 0.01
EPS Adjusted $ (0.02) $ - $ - $ (0.02)
Cinergy Corp.
EPS As Reported $ 0.60 $ 0.25 $ 0.66 $ 1.51
Special Items 0.12 0.11 0.31 $ 0.54
EPS Adjusted $ 0.72 $ 0.36 $ 0.97 $ 2.05
* Represents the mark-to-market impact of contracts used in Cinergy’s economic hedging of its excess unregulated generation portfolio and its
natural gas storage portfolio. The economic value of these portfolios is subject to market fluctuations and, as such, the hedging process
involves both purchases and sales. Because these generation assets and gas storage contracts are accounted for under the accrual method
of accounting, the Company believes that excluding the impact of mark-to-market changes from reported earnings better matches the contract
with the settlement period of the position it is hedging. These amounts will be recognized through adjusted earnings when the contracts
ultimately settle.
The increase in the third quarter of 2005 is primarily due to significant increases in the market price of power. Approximately 30% of the mark-
to-market value of these contracts is expected to settle in the fourth quarter of 2005 and an additional 60% is expected to settle in the first
quarter of 2006.
9. Schedule 4
CINERGY CORP.
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS - 2004
(unaudited)
Q1 Q2 Q3 Total
Regulated Businesses
EPS As Reported $ 0.44 $ 0.19 $ 0.32 $ 0.95
Special Items:
CIN-10 Implementation Costs - 0.03 - $ 0.03
EPS Adjusted $ 0.44 $ 0.22 $ 0.32 $ 0.98
Commercial Businesses
EPS As Reported $ 0.25 $ 0.17 $ 0.24 $ 0.66
Special Items:
CIN-10 Implementation Costs
and Other Charges - 0.04 0.03 0.07
Mark-to-Market Effect on Asset Hedges* (0.05) 0.02 0.07 0.04
EPS Adjusted $ 0.20 $ 0.23 $ 0.34 $ 0.77
Power Technology & Infrastructure Services
EPS As Reported $ (0.12) $ (0.04) $ (0.06) $ (0.22)
Special Items:
Impairment Writedowns and
Other Charges 0.11 0.02 0.05 0.18
EPS Adjusted $ (0.01) $ (0.02) $ (0.01) $ (0.04)
Cinergy Corp.
EPS As Reported $ 0.57 $ 0.32 $ 0.50 $ 1.39
Special Items 0.06 0.11 0.15 0.32
EPS Adjusted $ 0.63 $ 0.43 $ 0.65 $ 1.71
For 2004, the Regulated and Commercial segments have each been restated from prior presentations to reflect the reclassification of PSI's off-
system sales from the Commercial Businesses to the Regulated Businesses.
* Represents the mark-to-market impact of contracts used in Cinergy’s economic hedging of its excess unregulated generation portfolio and its
natural gas storage portfolio. The economic value of these portfolios is subject to market fluctuations and, as such, the hedging process
involves both purchases and sales. Because these generation assets and gas storage contracts are accounted for under the accrual method
of accounting, the Company believes that excluding the impact of mark-to-market changes from reported earnings better matches the contract
with the settlement period of the position it is hedging. These amounts will be recognized through adjusted earnings when the contracts
ultimately settle.
10. Schedule 5
CINERGY CORP.
BUSINESS SEGMENT SUMMARY INFORMATION
For the Quarter Ended September 30
(unaudited)
(dollars in thousands, except per share amounts)
2005 2004
Regulated Businesses
Net Income………………………………………………………… $ 90,834 $ 58,098
Earnings Per Share - diluted……………………………………… $ 0.46 $ 0.32
Operational Statistics:
Electric Retail MWh Sales and Transportation………………… 15,245,699 13,906,075
Gas Retail Mcf Sales and Transportation……………………… 9,165,119 9,673,313
Electric Customers (End of Period)…………………………… 1,565,743 1,547,420
Gas Customers (End of Period)………………………………… 507,069 501,361
Commercial Businesses
Net Income………………………………………………………… $ 41,567 $ 45,387
Earnings Per Share - diluted……………………………………… $ 0.20 $ 0.24
Operational Statistics:
Electricity Trading Volumes (MWhs)…………………………… 57,700,920 52,849,171
Physical and Financial Gas Trading (Bcf/d)…………………… 33.5 58.1
Power Technology & Infrastructure Services
Net Income………………………………………………………… $ (464) $ (10,562)
Earnings Per Share - diluted……………………………………… $ - $ (0.06)
For 2004, the Regulated and Commercial segments have each been restated from prior presentations to reflect the reclassification of
PSI's off-system sales from the Commercial Businesses to the Regulated Businesses.
11. Schedule 6
CINERGY CORP.
BUSINESS SEGMENT EARNINGS DRIVER ANALYSIS
For the Quarter Ended September 30, 2005
(unaudited)
Regulated Businesses
Earnings Per Share - diluted - 2004 (Adjusted*) $0.32
Weather………………………………………………………… 0.15
Electric and gas sales volumes……………………………… 0.02
Other margins………………………………………………… 0.02
Regulatory deferrals…………………………………………… 0.02
Regulatory transition charge amortization………………… (0.05)
Operation and maintenance………………………………… 0.02
Depreciation………………………………………………….. (0.02)
Financing and dilution………………………………………… (0.05)
Other - net……………………………………………………… 0.05
Earnings Per Share - diluted - 2005 (Adjusted*) $0.48
Commercial Businesses
Earnings Per Share - diluted - 2004 (Adjusted*) $0.34
Weather………………………………………………………… 0.04
Electric sales volumes………………………………………… 0.01
Price increases………………………………………………… 0.03
Fuel costs……………………………………………………… (0.03)
Optimization activities………………………………………… 0.13
Gas marketing, trading and origination …………………… 0.03
Financing and dilution………………………………………… (0.03)
Other - net……………………………………………………… (0.03)
Earnings Per Share - diluted - 2005 (Adjusted*) $0.49
Power Technology & Infrastructure Services
Earnings Per Share - diluted - 2004 (Adjusted*) ($0.01)
Results of investments…………………………………….… 0.01
Earnings Per Share - diluted - 2005 (Adjusted*) $0.00
For 2004, the Regulated and Commercial segments have each been restated from prior presentations to reflect the
reclassification of PSI's off-system sales from the Commercial Businesses to the Regulated Businesses.
* See Schedules 3 and 4 for a reconciliation to the most comparable GAAP measure.
12. Schedule 7
CINERGY CORP.
BUSINESS SEGMENT SUMMARY INFORMATION
For the Year to Date September 30
(unaudited)
(dollars in thousands, except per share amounts)
2005 2004
Regulated Businesses
Net Income………………………………………………………… $ 216,389 $ 173,219
Earnings Per Share - diluted……………………………………… $ 1.09 $ 0.95
Operational Statistics:
Electric Retail MWh Sales and Transportation………………… 41,358,027 40,109,527
Gas Retail Mcf Sales and Transportation……………………… 61,045,885 64,817,735
Electric Customers (End of Period)…………………………… 1,565,743 1,547,420
Gas Customers (End of Period)………………………………… 507,069 501,361
Commercial Businesses
Net Income………………………………………………………… $ 90,277 $ 121,378
Earnings Per Share - diluted……………………………………… $ 0.45 $ 0.66
Operational Statistics:
Electricity Trading Volumes (MWhs)…………………………… 151,022,248 136,367,693
Physical and Financial Gas Trading (Bcf/d)…………………… 53.6 50.8
Power Technology & Infrastructure Services
Net Income………………………………………………………… $ (6,665) $ (40,155)
Earnings Per Share - diluted……………………………………… $ (0.03) $ (0.22)
For 2004, the Regulated and Commercial segments have each been restated from prior presentations to reflect the reclassification of PSI's
off-system sales from the Commercial Businesses to the Regulated Businesses.
13. Schedule 8
CINERGY CORP.
BUSINESS SEGMENT EARNINGS DRIVER ANALYSIS
For the Year to Date September 30, 2005
(unaudited)
Regulated Businesses
Earnings Per Share - diluted - 2004 (Adjusted*) $0.98
Weather………………………………………………………… 0.14
Electric and gas sales volumes……………………………… 0.03
Price increases………………………………………………… 0.23
Other margins………………………………………………… 0.02
Regulatory deferrals…………………………………………… 0.06
Regulatory transition charge amortization………………… (0.09)
Operation and maintenance………………………………… (0.05)
Depreciation…………………………………………………… (0.10)
Financing and dilution………………………………………… (0.13)
Other - net……………………………………………………… 0.05
Earnings Per Share - diluted - 2005 (Adjusted*) $1.14
Commercial Businesses
Earnings Per Share - diluted - 2004 (Adjusted*) $0.77
Weather………………………………………………………… 0.03
Electric sales volumes………………………………………… 0.02
Price increases………………………………………………… 0.10
Fuel costs……………………………………………………… (0.09)
Optimization activities………………………………………… 0.28
Operation and maintenance………………………………… (0.03)
Power marketing, trading and origination…………………… 0.02
Gas marketing, trading and origination……………………… (0.10)
Financing and dilution………………………………………… (0.02)
Other - net……….…………………………………………… (0.05)
Earnings Per Share - diluted - 2005 (Adjusted*) $0.93
Power Technology & Infrastructure Services
Earnings Per Share - diluted - 2004 (Adjusted*) ($0.04)
Results of investments……………………………………… 0.02
Earnings Per Share - diluted - 2005 (Adjusted*) ($0.02)
For 2004, the Regulated and Commercial segments have each been restated from prior presentations to reflect the
reclassification of PSI's off-system sales from the Commercial Businesses to the Regulated Businesses.
* See Schedules 3 and 4 for a reconciliation to the most comparable GAAP measure.