This document summarizes FirstEnergy's financial results for the fourth quarter of 2007. Some key points:
- Normalized non-GAAP earnings were $0.90 per share for Q4 2007, up from $0.84 per share in Q4 2006.
- GAAP earnings for Q4 2007 were $0.88 per share, up from $0.85 per share in Q4 2006.
- For the full year 2007, normalized non-GAAP earnings were $4.23 per share, near the guidance range, and up from $3.88 per share in 2006.
This document provides a consolidated report for FirstEnergy Corp for the second quarter of 2007. Some key highlights include:
- Normalized non-GAAP earnings were $1.13 per share for Q2 2007 compared to $0.95 per share for Q2 2006.
- GAAP earnings were $1.11 per share for Q2 2007 compared to $0.92 per share for Q2 2006.
- Higher electric distribution deliveries and generation revenues contributed to increased earnings. However, this was partially offset by higher purchased power costs and financing costs.
This document provides a consolidated report for FirstEnergy Corp.'s third quarter of 2007. Some key highlights include:
- Normalized non-GAAP earnings were $1.32 per share for Q3 2007 compared to $1.42 per share for Q3 2006.
- GAAP earnings were $1.36 per share for Q3 2007 compared to $1.41 per share for Q3 2006.
- Earnings guidance for 2007 was revised to $4.15 to $4.25 per share from the previous range of $4.05 to $4.25 per share.
First, earnings per share for the first quarter of 2007 were $0.92 compared to $0.67 in the first quarter of 2006. Normalized non-GAAP earnings, excluding special items, were $0.88 per share for the first quarter of 2007. Higher electric distribution deliveries and generation revenues increased earnings, while higher fuel and purchased power expenses and lower distribution rates reduced earnings. Earnings guidance for 2007 remains at $4.05 to $4.25 per share on a non-GAAP basis excluding special items.
first energy 4Q 06 Consolidated Report to the Financial_Communityfinance21
This document is Consolidated Energy's quarterly report for Q4 2006. It provides an analysis of changes in EPS from Q4 2005 to Q4 2006. Normalized non-GAAP EPS increased from $0.77 to $0.84 primarily due to regulatory changes in Ohio that increased earnings. However, lower distribution deliveries and generation revenues, along with higher fuel and purchase power costs reduced earnings. Guidance for 2007 normalized non-GAAP EPS is $4.05 to $4.25.
This document is a consolidated report from FirstEnergy Corp for the second quarter of 2008. Some key points:
- Normalized non-GAAP earnings were $0.87 per share for Q2 2008, down from $1.13 per share in Q2 2007, with lower distribution deliveries and higher fuel/purchased power costs reducing earnings.
- GAAP earnings were $0.86 per share for Q2 2008 compared to $1.11 per share in the prior year.
- Earnings guidance for 2008 was revised to $4.25 to $4.35 per share on a non-GAAP basis.
This document is FirstEnergy Corp.'s consolidated report for the first quarter of 2008. It provides highlights of financial results including non-GAAP earnings of $0.88 per share, unchanged from the prior year. Increased electric distribution deliveries and generation revenues were offset by higher fuel and purchased power costs. The report also reaffirms earnings guidance for 2008.
This document provides a summary of FirstEnergy Corp.'s financial results for the third quarter of 2006.
- Normalized non-GAAP earnings were $1.42 per share for Q3 2006, up from $1.04 per share in Q3 2005. GAAP earnings were $1.41 per share for Q3 2006 compared to $1.01 per share in Q3 2005.
- Factors that increased earnings included regulatory changes in Ohio and lower fuel and purchased power costs. Factors that decreased earnings included lower distribution deliveries due to mild weather and lower generation revenues from lower wholesale prices and sales volumes.
- Guidance for 2006 normalized non-GAAP earnings was increased to
first energy 3Q 08 Consolidated Finan Communityfinance21
This document summarizes FirstEnergy's financial results for the third quarter of 2008 compared to the third quarter of 2007. Key points include:
- Earnings per share increased to $1.55 from $1.36 due to higher wholesale sales prices and lower expenses, partially offset by higher fuel costs.
- Electric deliveries declined 2% due to mild weather while generation revenues increased due to higher wholesale prices. Fuel and purchased power expenses rose.
- Several other factors positively impacted earnings, including lower pension expenses and financing costs.
- Guidance for 2008 earnings per share was increased to $4.30 to $4.40, up from $4.25 to $4.35.
This document provides a consolidated report for FirstEnergy Corp for the second quarter of 2007. Some key highlights include:
- Normalized non-GAAP earnings were $1.13 per share for Q2 2007 compared to $0.95 per share for Q2 2006.
- GAAP earnings were $1.11 per share for Q2 2007 compared to $0.92 per share for Q2 2006.
- Higher electric distribution deliveries and generation revenues contributed to increased earnings. However, this was partially offset by higher purchased power costs and financing costs.
This document provides a consolidated report for FirstEnergy Corp.'s third quarter of 2007. Some key highlights include:
- Normalized non-GAAP earnings were $1.32 per share for Q3 2007 compared to $1.42 per share for Q3 2006.
- GAAP earnings were $1.36 per share for Q3 2007 compared to $1.41 per share for Q3 2006.
- Earnings guidance for 2007 was revised to $4.15 to $4.25 per share from the previous range of $4.05 to $4.25 per share.
First, earnings per share for the first quarter of 2007 were $0.92 compared to $0.67 in the first quarter of 2006. Normalized non-GAAP earnings, excluding special items, were $0.88 per share for the first quarter of 2007. Higher electric distribution deliveries and generation revenues increased earnings, while higher fuel and purchased power expenses and lower distribution rates reduced earnings. Earnings guidance for 2007 remains at $4.05 to $4.25 per share on a non-GAAP basis excluding special items.
first energy 4Q 06 Consolidated Report to the Financial_Communityfinance21
This document is Consolidated Energy's quarterly report for Q4 2006. It provides an analysis of changes in EPS from Q4 2005 to Q4 2006. Normalized non-GAAP EPS increased from $0.77 to $0.84 primarily due to regulatory changes in Ohio that increased earnings. However, lower distribution deliveries and generation revenues, along with higher fuel and purchase power costs reduced earnings. Guidance for 2007 normalized non-GAAP EPS is $4.05 to $4.25.
This document is a consolidated report from FirstEnergy Corp for the second quarter of 2008. Some key points:
- Normalized non-GAAP earnings were $0.87 per share for Q2 2008, down from $1.13 per share in Q2 2007, with lower distribution deliveries and higher fuel/purchased power costs reducing earnings.
- GAAP earnings were $0.86 per share for Q2 2008 compared to $1.11 per share in the prior year.
- Earnings guidance for 2008 was revised to $4.25 to $4.35 per share on a non-GAAP basis.
This document is FirstEnergy Corp.'s consolidated report for the first quarter of 2008. It provides highlights of financial results including non-GAAP earnings of $0.88 per share, unchanged from the prior year. Increased electric distribution deliveries and generation revenues were offset by higher fuel and purchased power costs. The report also reaffirms earnings guidance for 2008.
This document provides a summary of FirstEnergy Corp.'s financial results for the third quarter of 2006.
- Normalized non-GAAP earnings were $1.42 per share for Q3 2006, up from $1.04 per share in Q3 2005. GAAP earnings were $1.41 per share for Q3 2006 compared to $1.01 per share in Q3 2005.
- Factors that increased earnings included regulatory changes in Ohio and lower fuel and purchased power costs. Factors that decreased earnings included lower distribution deliveries due to mild weather and lower generation revenues from lower wholesale prices and sales volumes.
- Guidance for 2006 normalized non-GAAP earnings was increased to
first energy 3Q 08 Consolidated Finan Communityfinance21
This document summarizes FirstEnergy's financial results for the third quarter of 2008 compared to the third quarter of 2007. Key points include:
- Earnings per share increased to $1.55 from $1.36 due to higher wholesale sales prices and lower expenses, partially offset by higher fuel costs.
- Electric deliveries declined 2% due to mild weather while generation revenues increased due to higher wholesale prices. Fuel and purchased power expenses rose.
- Several other factors positively impacted earnings, including lower pension expenses and financing costs.
- Guidance for 2008 earnings per share was increased to $4.30 to $4.40, up from $4.25 to $4.35.
- Revenue for the third quarter of 2008 was $1.965 billion, up slightly from $1.865 billion in the third quarter of 2007.
- Net earnings for the quarter were $187.65 million, up 8% from $174.59 million in the third quarter of 2007.
- Earnings per share for the quarter were $1.01, up from $0.87 in the prior year period.
Danaher Corporation announced its second quarter 2007 results, with net earnings of $311 million compared to $314 million in the second quarter of 2006. Sales increased 13.5% to $2.67 billion. For the first six months of 2007, net earnings were $566 million on sales of $5.23 billion, increases of 5.5% and 16.5% respectively over the same period in 2006. The company stated that core revenue growth was 4.5% in the quarter despite difficult comparisons, and that performance through the first half gives them confidence in achieving positive results for the full year.
1) Ameren reported 2007 earnings per share of $2.98 but expects 2008 EPS to be between $2.68-$3.08 due to various factors including weather, fuel prices, plant maintenance costs and regulatory proceedings.
2) Ameren aims for 4-6% annual EPS growth through 2010 and beyond, targeting over $4 EPS by 2011 and strong long-term shareholder returns.
3) Ameren provided its 2008 EPS guidance breakdown by segment and an overview of its regulatory proceedings calendar.
This document provides financial information for Aetna for the second quarter and first half of 2006 compared to the same periods in 2005. Some key details:
- Total revenue increased 13.6% in the second quarter and 14.5% for the first half compared to prior year. Health care premiums and fees revenue saw similar increases.
- Income from continuing operations was $389.5 million in the second quarter, roughly flat with the prior year. Income for the first half was $775.1 million, down 1.2% from 2005.
- Medical membership increased 6.7% in the second quarter to 15.4 million members, with a significant rise in commercial and Medicare Advantage enrollment
DTE Energy Company reported financial results for the second quarter of 2000. Operating revenues increased 24.2% to $1.428 billion due to higher fuel and purchased power costs. Net income was $108 million, down slightly from $110 million in the previous year. Earnings per share were $0.76, unchanged from the prior year when excluding one-time items. For the six months ended June 30, 2000, operating revenues increased 20.1% to $2.610 billion while net income was $224 million, relatively unchanged from the previous year.
first energy 4Q 08 Consolidated Report NEW NEW209finance21
- FirstEnergy reported normalized non-GAAP earnings per share of $1.21 for Q4 2008, up from $0.90 in Q4 2007. Normalized non-GAAP earnings for 2008 were $4.57 per share.
- Key drivers of the increase were lower generation O&M expenses due to fewer outages and emission allowance gains, as well as lower energy delivery and transmission costs from cost control measures. Higher wholesale and retail electricity prices also contributed.
- These increases were partially offset by higher fuel costs due to fuel surcharges and transportation costs, as well as impairment of securities held for nuclear decommissioning trust funds.
- FirstEnergy did not provide 2009 earnings guidance
The document provides operating and financial results for 2008 for CEMAR and Light. Key highlights include:
- Billed energy volume grew 1.4% to 9,271 GWh for the year. CEMAR's volume grew 4% while Light's was flat.
- CEMAR's energy losses were 28.2% and Light's were 20.23% in the fourth quarter.
- Consolidated net operating revenues grew 9.6% to R$2,346 million for the year. EBITDA grew 15.8% to R$784.4 million.
- The Board approved a proposed dividend payment of R$190.2 million and capital reduction of R$82.
DTE Energy Company reported financial results for the third quarter of 1999. Operating revenues increased 20.1% to $1.44 billion due to higher net system sales and a performance reserve from Fermi 2. Total operating expenses rose 24.3% to $1.16 billion primarily from increased fuel and purchased power costs. As a result, operating income grew 5.4% while net income increased 21.8% and earnings per share rose 21.8% to $1.11.
This document provides a consolidated report for FirstEnergy Corp for the second quarter of 2007. Some key highlights include:
- Normalized non-GAAP earnings were $1.13 per share for Q2 2007 compared to $0.95 per share for Q2 2006.
- GAAP earnings for Q2 2007 were $1.11 per share compared to $0.92 per share in Q2 2006.
- Electric distribution deliveries increased 4% primarily due to higher weather-related usage. Earnings guidance for 2007 remains at $4.05 to $4.25 per share on a normalized non-GAAP basis.
This document provides a consolidated report for FirstEnergy Corp.'s third quarter of 2007. Some key highlights include:
- Normalized non-GAAP earnings were $1.32 per share for Q3 2007 compared to $1.42 per share for Q3 2006.
- GAAP earnings were $1.36 per share for Q3 2007 compared to $1.41 per share for Q3 2006.
- Earnings guidance for 2007 was revised to $4.15 to $4.25 per share from the previous range of $4.05 to $4.25 per share.
First, earnings per share for the first quarter of 2007 were $0.92 compared to $0.67 in the first quarter of 2006. Normalized non-GAAP earnings, excluding special items, were $0.88 per share for the first quarter of 2007. Higher electric distribution deliveries and generation revenues increased earnings, while higher fuel and purchased power expenses and lower distribution rates reduced earnings. Overall, normalized earnings increased due to various factors including higher sales volumes and market prices.
first energy 4Q06 Consolidated Report to the Financial_Communityfinance21
- FirstEnergy reported normalized non-GAAP earnings of $0.84 per share for Q4 2006, up from $0.77 per share in Q4 2005. GAAP earnings were $0.85 per share compared to $0.58 per share in Q4 2005.
- Earnings were positively impacted by Ohio regulatory changes which increased earnings by $0.23 per share. However, lower distribution deliveries and generation revenues reduced earnings. Higher fuel and purchased power costs also decreased earnings.
- For full-year 2006, normalized non-GAAP earnings were $3.88 per share, exceeding guidance of $3.75-$3.85 per share. GAAP earnings were $3.
- FirstEnergy reported normalized non-GAAP earnings of $0.87 per share for Q2 2008, compared to $1.13 per share for Q2 2007. GAAP earnings were $0.86 per share for Q2 2008 and $1.11 per share for Q2 2007.
- Electric distribution deliveries declined 2% due to milder weather, decreasing earnings by $0.05 per share. Generation revenues increased earnings by $0.08 per share due to higher wholesale and retail prices despite a 6% decline in generation sales.
- Higher fuel and purchased power expenses reduced earnings by $0.23 per share due to increased market prices and coal transportation costs.
first energy 3Q 08 Consolidated Finan Communityfinance21
This document summarizes FirstEnergy's financial results for the third quarter of 2008 compared to the third quarter of 2007. Key points include:
- Earnings per share increased to $1.55 from $1.36 due to higher wholesale sales prices and lower expenses, partially offset by higher fuel costs.
- Electric deliveries declined 2% due to mild weather while generation revenues increased due to higher wholesale prices. Fuel and purchased power expenses rose due to higher market prices.
- FirstEnergy increased its full-year 2008 earnings guidance due to better-than-expected third quarter results.
This document provides a consolidated report for FirstEnergy Corp for the first quarter of 2008. Some key highlights include:
- Normalized non-GAAP earnings were $0.88 per share, unchanged from the first quarter of 2007. GAAP earnings were $0.91 per share compared to $0.92 per share in the prior year.
- Electric distribution deliveries increased 1% overall, increasing earnings by $0.02 per share. Generation revenues increased $0.23 per share due to higher wholesale and retail prices.
- Fuel and purchased power expenses reduced earnings by $0.19 per share due to higher fuel costs and market prices.
- 2008 earnings guidance remains at $4.15
This document provides a summary of FirstEnergy Corp.'s financial results for the third quarter of 2006.
- Normalized non-GAAP earnings were $1.42 per share for Q3 2006, up from $1.04 per share in Q3 2005. GAAP earnings were $1.41 per share for Q3 2006 compared to $1.01 per share in Q3 2005.
- Factors that increased earnings included regulatory changes in Ohio and lower fuel and purchased power costs. Factors that decreased earnings included lower distribution deliveries due to mild weather and lower generation revenues from lower wholesale prices and sales volumes.
- Guidance for 2006 normalized non-GAAP earnings was increased to
Duke Energy reported first quarter 2006 results, with ongoing diluted EPS of 48 cents, up from 43 cents in the prior year. Reported diluted EPS was 37 cents compared to 88 cents last year. Results improved at Franchised Electric, Natural Gas Transmission, and International Energy segments due to factors like customer growth, currency impacts, and improved prices and volumes. Duke Energy is on track to achieve its 2006 target of $1.90 in ongoing diluted EPS and remains comfortable after merging with Cinergy that it can achieve this target for the combined company.
This document summarizes Duke Energy's financial performance in the 4th quarter and full year of 2006. Key points include:
- Ongoing diluted EPS for 2006 was $1.81, up from $1.73 in 2005, due to the addition of Cinergy offset by lower results at Crescent and International.
- Commercial Power results declined due to purchase accounting charges related to the Cinergy merger and losses from Midwest gas plants.
- International Energy results decreased because of lower earnings at National Methanol.
- Interest expense increased in 4Q06 primarily due to the Cinergy merger. The effective tax rate also declined due to tax settlements and other factors.
This document provides operating and financial results for 2008. Some key highlights include:
- Billed energy volume for CEMAR and Light increased 1.4% to 9,271 GWh for the year.
- CEMAR's energy losses were 28.2% in Q4 2008, down slightly from the previous quarter. Light's losses decreased to 20.23%.
- Consolidated net operating revenues increased 9.6% to R$2,346.0 million for 2008, driven by growth at CEMAR and Light.
- The board approved a dividend payment of R$190.2 million and capital reduction of R$82.3 million, totaling R$284
first energy 4Q 08 Consolidated ReportNEW NEW209finance21
- Fourth quarter 2008 earnings were $1.09 per share on a GAAP basis and $1.21 per share on a non-GAAP basis, excluding special items, compared to $0.88 and $0.90 per share respectively in the fourth quarter of 2007.
- Key drivers of the increased earnings included lower generation O&M expenses, lower energy delivery expenses, and a higher effective income tax rate. These increases were partially offset by higher fuel costs and impairment of securities held in trust.
- For the full year 2008, earnings were $4.41 per share on a GAAP basis and $4.57 per share on a non-GAAP basis, excluding special items, exceeding guidance
This document provides a summary of Fannie Mae's financial results for the first quarter of 2008. Some key points:
- Fannie Mae reported a net loss of $2.2 billion for the quarter, an improvement from a $3.6 billion loss in the previous quarter. Revenues grew but losses on investments and derivatives also increased.
- Credit losses rose to $3.2 billion due to higher mortgage defaults and loss severities from falling home prices and economic weakness.
- Fannie Mae plans to raise $6 billion in new capital through stock offerings to maintain a strong balance sheet and provide stability in the mortgage market.
- Management is focusing on tightening lending standards and mitigating
This document summarizes Pfizer's fourth quarter 2007 earnings teleconference. It reports that Pfizer exceeded its 2007 revenue and EPS guidance. Key highlights included:
- Revenue increased 4% year-over-year in Q4 2007 and 1% for full year 2007. Adjusted diluted EPS increased 21% in Q4 2007 and 7% for full year.
- New products like Chantix, Lyrica and Sutent grew substantially and partially offset declines from products that lost exclusivity.
- 2008 guidance was increased, with revenue range increased and bottom end of EPS guidance also increased.
- Cost reduction initiatives continued to reduce expenses, with further savings expected in 2008.
- Revenue for the third quarter of 2008 was $1.965 billion, up slightly from $1.865 billion in the third quarter of 2007.
- Net earnings for the quarter were $187.65 million, up 8% from $174.59 million in the third quarter of 2007.
- Earnings per share for the quarter were $1.01, up from $0.87 in the prior year period.
Danaher Corporation announced its second quarter 2007 results, with net earnings of $311 million compared to $314 million in the second quarter of 2006. Sales increased 13.5% to $2.67 billion. For the first six months of 2007, net earnings were $566 million on sales of $5.23 billion, increases of 5.5% and 16.5% respectively over the same period in 2006. The company stated that core revenue growth was 4.5% in the quarter despite difficult comparisons, and that performance through the first half gives them confidence in achieving positive results for the full year.
1) Ameren reported 2007 earnings per share of $2.98 but expects 2008 EPS to be between $2.68-$3.08 due to various factors including weather, fuel prices, plant maintenance costs and regulatory proceedings.
2) Ameren aims for 4-6% annual EPS growth through 2010 and beyond, targeting over $4 EPS by 2011 and strong long-term shareholder returns.
3) Ameren provided its 2008 EPS guidance breakdown by segment and an overview of its regulatory proceedings calendar.
This document provides financial information for Aetna for the second quarter and first half of 2006 compared to the same periods in 2005. Some key details:
- Total revenue increased 13.6% in the second quarter and 14.5% for the first half compared to prior year. Health care premiums and fees revenue saw similar increases.
- Income from continuing operations was $389.5 million in the second quarter, roughly flat with the prior year. Income for the first half was $775.1 million, down 1.2% from 2005.
- Medical membership increased 6.7% in the second quarter to 15.4 million members, with a significant rise in commercial and Medicare Advantage enrollment
DTE Energy Company reported financial results for the second quarter of 2000. Operating revenues increased 24.2% to $1.428 billion due to higher fuel and purchased power costs. Net income was $108 million, down slightly from $110 million in the previous year. Earnings per share were $0.76, unchanged from the prior year when excluding one-time items. For the six months ended June 30, 2000, operating revenues increased 20.1% to $2.610 billion while net income was $224 million, relatively unchanged from the previous year.
first energy 4Q 08 Consolidated Report NEW NEW209finance21
- FirstEnergy reported normalized non-GAAP earnings per share of $1.21 for Q4 2008, up from $0.90 in Q4 2007. Normalized non-GAAP earnings for 2008 were $4.57 per share.
- Key drivers of the increase were lower generation O&M expenses due to fewer outages and emission allowance gains, as well as lower energy delivery and transmission costs from cost control measures. Higher wholesale and retail electricity prices also contributed.
- These increases were partially offset by higher fuel costs due to fuel surcharges and transportation costs, as well as impairment of securities held for nuclear decommissioning trust funds.
- FirstEnergy did not provide 2009 earnings guidance
The document provides operating and financial results for 2008 for CEMAR and Light. Key highlights include:
- Billed energy volume grew 1.4% to 9,271 GWh for the year. CEMAR's volume grew 4% while Light's was flat.
- CEMAR's energy losses were 28.2% and Light's were 20.23% in the fourth quarter.
- Consolidated net operating revenues grew 9.6% to R$2,346 million for the year. EBITDA grew 15.8% to R$784.4 million.
- The Board approved a proposed dividend payment of R$190.2 million and capital reduction of R$82.
DTE Energy Company reported financial results for the third quarter of 1999. Operating revenues increased 20.1% to $1.44 billion due to higher net system sales and a performance reserve from Fermi 2. Total operating expenses rose 24.3% to $1.16 billion primarily from increased fuel and purchased power costs. As a result, operating income grew 5.4% while net income increased 21.8% and earnings per share rose 21.8% to $1.11.
This document provides a consolidated report for FirstEnergy Corp for the second quarter of 2007. Some key highlights include:
- Normalized non-GAAP earnings were $1.13 per share for Q2 2007 compared to $0.95 per share for Q2 2006.
- GAAP earnings for Q2 2007 were $1.11 per share compared to $0.92 per share in Q2 2006.
- Electric distribution deliveries increased 4% primarily due to higher weather-related usage. Earnings guidance for 2007 remains at $4.05 to $4.25 per share on a normalized non-GAAP basis.
This document provides a consolidated report for FirstEnergy Corp.'s third quarter of 2007. Some key highlights include:
- Normalized non-GAAP earnings were $1.32 per share for Q3 2007 compared to $1.42 per share for Q3 2006.
- GAAP earnings were $1.36 per share for Q3 2007 compared to $1.41 per share for Q3 2006.
- Earnings guidance for 2007 was revised to $4.15 to $4.25 per share from the previous range of $4.05 to $4.25 per share.
First, earnings per share for the first quarter of 2007 were $0.92 compared to $0.67 in the first quarter of 2006. Normalized non-GAAP earnings, excluding special items, were $0.88 per share for the first quarter of 2007. Higher electric distribution deliveries and generation revenues increased earnings, while higher fuel and purchased power expenses and lower distribution rates reduced earnings. Overall, normalized earnings increased due to various factors including higher sales volumes and market prices.
first energy 4Q06 Consolidated Report to the Financial_Communityfinance21
- FirstEnergy reported normalized non-GAAP earnings of $0.84 per share for Q4 2006, up from $0.77 per share in Q4 2005. GAAP earnings were $0.85 per share compared to $0.58 per share in Q4 2005.
- Earnings were positively impacted by Ohio regulatory changes which increased earnings by $0.23 per share. However, lower distribution deliveries and generation revenues reduced earnings. Higher fuel and purchased power costs also decreased earnings.
- For full-year 2006, normalized non-GAAP earnings were $3.88 per share, exceeding guidance of $3.75-$3.85 per share. GAAP earnings were $3.
- FirstEnergy reported normalized non-GAAP earnings of $0.87 per share for Q2 2008, compared to $1.13 per share for Q2 2007. GAAP earnings were $0.86 per share for Q2 2008 and $1.11 per share for Q2 2007.
- Electric distribution deliveries declined 2% due to milder weather, decreasing earnings by $0.05 per share. Generation revenues increased earnings by $0.08 per share due to higher wholesale and retail prices despite a 6% decline in generation sales.
- Higher fuel and purchased power expenses reduced earnings by $0.23 per share due to increased market prices and coal transportation costs.
first energy 3Q 08 Consolidated Finan Communityfinance21
This document summarizes FirstEnergy's financial results for the third quarter of 2008 compared to the third quarter of 2007. Key points include:
- Earnings per share increased to $1.55 from $1.36 due to higher wholesale sales prices and lower expenses, partially offset by higher fuel costs.
- Electric deliveries declined 2% due to mild weather while generation revenues increased due to higher wholesale prices. Fuel and purchased power expenses rose due to higher market prices.
- FirstEnergy increased its full-year 2008 earnings guidance due to better-than-expected third quarter results.
This document provides a consolidated report for FirstEnergy Corp for the first quarter of 2008. Some key highlights include:
- Normalized non-GAAP earnings were $0.88 per share, unchanged from the first quarter of 2007. GAAP earnings were $0.91 per share compared to $0.92 per share in the prior year.
- Electric distribution deliveries increased 1% overall, increasing earnings by $0.02 per share. Generation revenues increased $0.23 per share due to higher wholesale and retail prices.
- Fuel and purchased power expenses reduced earnings by $0.19 per share due to higher fuel costs and market prices.
- 2008 earnings guidance remains at $4.15
This document provides a summary of FirstEnergy Corp.'s financial results for the third quarter of 2006.
- Normalized non-GAAP earnings were $1.42 per share for Q3 2006, up from $1.04 per share in Q3 2005. GAAP earnings were $1.41 per share for Q3 2006 compared to $1.01 per share in Q3 2005.
- Factors that increased earnings included regulatory changes in Ohio and lower fuel and purchased power costs. Factors that decreased earnings included lower distribution deliveries due to mild weather and lower generation revenues from lower wholesale prices and sales volumes.
- Guidance for 2006 normalized non-GAAP earnings was increased to
Duke Energy reported first quarter 2006 results, with ongoing diluted EPS of 48 cents, up from 43 cents in the prior year. Reported diluted EPS was 37 cents compared to 88 cents last year. Results improved at Franchised Electric, Natural Gas Transmission, and International Energy segments due to factors like customer growth, currency impacts, and improved prices and volumes. Duke Energy is on track to achieve its 2006 target of $1.90 in ongoing diluted EPS and remains comfortable after merging with Cinergy that it can achieve this target for the combined company.
This document summarizes Duke Energy's financial performance in the 4th quarter and full year of 2006. Key points include:
- Ongoing diluted EPS for 2006 was $1.81, up from $1.73 in 2005, due to the addition of Cinergy offset by lower results at Crescent and International.
- Commercial Power results declined due to purchase accounting charges related to the Cinergy merger and losses from Midwest gas plants.
- International Energy results decreased because of lower earnings at National Methanol.
- Interest expense increased in 4Q06 primarily due to the Cinergy merger. The effective tax rate also declined due to tax settlements and other factors.
This document provides operating and financial results for 2008. Some key highlights include:
- Billed energy volume for CEMAR and Light increased 1.4% to 9,271 GWh for the year.
- CEMAR's energy losses were 28.2% in Q4 2008, down slightly from the previous quarter. Light's losses decreased to 20.23%.
- Consolidated net operating revenues increased 9.6% to R$2,346.0 million for 2008, driven by growth at CEMAR and Light.
- The board approved a dividend payment of R$190.2 million and capital reduction of R$82.3 million, totaling R$284
first energy 4Q 08 Consolidated ReportNEW NEW209finance21
- Fourth quarter 2008 earnings were $1.09 per share on a GAAP basis and $1.21 per share on a non-GAAP basis, excluding special items, compared to $0.88 and $0.90 per share respectively in the fourth quarter of 2007.
- Key drivers of the increased earnings included lower generation O&M expenses, lower energy delivery expenses, and a higher effective income tax rate. These increases were partially offset by higher fuel costs and impairment of securities held in trust.
- For the full year 2008, earnings were $4.41 per share on a GAAP basis and $4.57 per share on a non-GAAP basis, excluding special items, exceeding guidance
This document provides a summary of Fannie Mae's financial results for the first quarter of 2008. Some key points:
- Fannie Mae reported a net loss of $2.2 billion for the quarter, an improvement from a $3.6 billion loss in the previous quarter. Revenues grew but losses on investments and derivatives also increased.
- Credit losses rose to $3.2 billion due to higher mortgage defaults and loss severities from falling home prices and economic weakness.
- Fannie Mae plans to raise $6 billion in new capital through stock offerings to maintain a strong balance sheet and provide stability in the mortgage market.
- Management is focusing on tightening lending standards and mitigating
This document summarizes Pfizer's fourth quarter 2007 earnings teleconference. It reports that Pfizer exceeded its 2007 revenue and EPS guidance. Key highlights included:
- Revenue increased 4% year-over-year in Q4 2007 and 1% for full year 2007. Adjusted diluted EPS increased 21% in Q4 2007 and 7% for full year.
- New products like Chantix, Lyrica and Sutent grew substantially and partially offset declines from products that lost exclusivity.
- 2008 guidance was increased, with revenue range increased and bottom end of EPS guidance also increased.
- Cost reduction initiatives continued to reduce expenses, with further savings expected in 2008.
The document summarizes Tribune Company's financial results for the third quarter and first three quarters of 2006 compared to the same periods in 2005. Some key highlights:
- Operating revenues and operating profit declined in the third quarter of 2006 compared to 2005, while operating expenses increased slightly.
- Non-operating items contributed significantly to net income in the third quarter of 2006, driven largely by gains from partnerships restructurings and asset sales.
- Income from continuing operations increased substantially, while income from discontinued operations (tv station sales) declined.
- Earnings per share increased for the third quarter and first three quarters of 2006 compared to 2005 periods.
Merck reported financial results for the second quarter of 2008, with non-GAAP EPS of $0.86 excluding restructuring charges, and GAAP EPS of $0.82. Worldwide sales were $6.1 billion, a 1% decrease from the previous year. Key drugs like JANUVIA, ISENTRESS and COZAAR/HYZAAR saw strong growth. At this time, Merck is not providing full-year 2008 or long-term guidance due to needing to assess results of the SEAS study on its cholesterol joint venture.
Merck reported financial results for the second quarter of 2008, with non-GAAP EPS of $0.86 excluding restructuring charges, and GAAP EPS of $0.82. Worldwide sales were $6.1 billion, a 1% decrease from the previous year. Key drugs like Januvia and Isentress saw strong growth, while the FDA closed a warning letter regarding Merck's vaccine manufacturing. However, Merck did not provide full-year guidance due to the impact of new data on its cholesterol joint venture with Schering-Plough.
DTE Energy reported financial results for the third quarter of 1999. Operating revenues increased 20.1% to $1.44 billion due to higher net system sales and a performance reserve from Fermi 2. However, operating expenses also increased 24.3% to $1.16 billion primarily because of higher fuel and purchased power costs. As a result, operating income rose modestly to $281 million. Net income increased 21.8% to $161 million compared to $132 million in 1998, contributing to a rise in earnings per share to $1.11 from $0.91 in the previous year. The financial results reflected growth in both the company's regulated and non-regulated operations.
GM reported preliminary second quarter 2007 results with adjusted EPS of $2.48. Key highlights included record automotive revenue, continued share gains outside North America, and adjusted automotive operating cash flow of $1.1 billion. GM also announced the planned sale of Allison Transmission for $5.6 billion. While results improved from the second quarter of 2006, they included special items such as $374 million related to Delphi. GM maintained a strong liquidity position of $27.2 billion.
Ford reported its financial results for the fourth quarter and full year 2007. Key highlights include:
- Wholesales increased 1.6% in the fourth quarter but were down 6.5% for the full year.
- Fourth quarter revenue increased $5.3 billion but the company had a pre-tax loss of $620 million compared to a profit of $1.3 billion in 2006.
- For the full year, revenue increased $13.8 billion but the company had a pre-tax loss of $366 million compared to a profit of $2.3 billion in 2006.
- Cost reductions of $1.8 billion were achieved for the full year but special items negatively impacted results.
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?
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
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.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
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5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"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.
1. Consolidated Report to the Financial Community
Fourth Quarter 2007
(Released February 25, 2008)
HIGHLIGHTS
After-Tax EPS Variance Analysis 4th Qtr.
4Q 2006 Basic EPS – GAAP Basis $0.85
Normalized non-GAAP* earnings, excluding
Special Items – 2006 (0.01)
special items, were $0.90 per share for the
4Q 2006 Normalized Earnings – Non-GAAP Basis* $0.84
fourth quarter of 2007, compared with $0.84 Distribution Deliveries 0.05
per share for the fourth quarter of 2006. Met-Ed and Penelec Distribution Rate Decrease (0.05)
GAAP earnings for the fourth quarter of 2007 Generation Revenues 0.26
Fuel & Purchased Power (0.20)
were $0.88 per share compared with $0.85 per
Energy Delivery Expenses (0.05)
share in the prior year.
Pensions and Other Post-retirement Benefits 0.06
Corporate-Owned Life Insurance (COLI) (0.06)
Normalized non-GAAP* earnings for 2007, Depreciation (0.02)
excluding special items, were $4.23 per share, General Taxes (0.01)
near the top of our earnings guidance of $4.15 Financing Costs 0.05
Reduced Common Shares Outstanding 0.04
to $4.25 per share. This also compares
Other (0.01)
favorably with 2006 normalized, non-GAAP
4Q 2007 Normalized Earnings – Non-GAAP Basis* $0.90
earnings of $3.88 per share. GAAP earnings Special Items - 2007 (0.02)
for 2007 were $4.27 per share, compared with 4Q 2007 Basic EPS – GAAP Basis $0.88
$3.84 per share in 2006.
4Q 2007 Results vs. 4Q 2006
Electric distribution deliveries increased 3%, primarily due to colder weather. Heating-degree-
days were 6% higher than in the same period last year, but 8% below normal. Commercial and
residential deliveries increased 5% and 4%, respectively, while industrial deliveries increased
slightly. The resulting higher distribution delivery revenues increased earnings by $0.05 per
share, but were offset by a $0.05 per share reduction in earnings resulting from the Metropolitan
Edison Company (Met-Ed) and Pennsylvania Electric Company (Penelec) distribution rate
decrease effective in January 2007.
Total electric generation sales increased 4%. Wholesale sales increased 0.7 million megawatt-
hours (MWh) or 13%, while retail generation sales increased 0.4 million MWh or 1%.
Generation revenues, excluding power sourced from third-party auction suppliers for our Jersey
Central Power & Light Company (JCP&L) and Pennsylvania Power Company (Penn Power)
customers, increased earnings by $0.26 per share. This increase was attributable to higher
wholesale and retail prices, as well as higher sales volume.
Higher purchased power expense, excluding JCP&L and Penn Power purchases from third-party
auction suppliers, reduced earnings by $0.18 per share, primarily due to higher market prices
compared to the same period last year. Higher fuel costs reduced earnings by $0.02 per share.
Increased Energy Delivery expenses reduced earnings by $0.05 per share, reflecting higher
storm-related maintenance and increased system reliability spending.
2. Reduced pension and other post-retirement benefit costs increased earnings by $0.06 per share,
mainly due to retiree health care design changes and the impact of the $300 million voluntary
contribution to the pension plan made in January 2007.
Decreased investment income related to corporate-owned life insurance reduced earnings by
$0.06 per share.
Incremental property additions increased depreciation expense by $0.02 per share.
Higher general taxes reduced earnings by $0.01 per share, primarily due to higher Pennsylvania
gross receipts taxes.
Lower financing costs increased earnings by $0.05 per share. The decrease in financing costs is
attributable to reduced short-term borrowings, interest capitalized on higher construction
spending, and lower refinancing costs.
The reduction in shares outstanding, due to the accelerated repurchase of 14.4 million common
shares in March 2007, enhanced earnings by $0.04 per share.
During the quarter, a $0.02 per share reduction in earnings was recognized from the impairment
of securities held in trust for future nuclear decommissioning activities.
2008 Earnings Guidance
Normalized non-GAAP* earnings guidance for 2008, excluding special items, is $4.15 to $4.35
per share. Our estimate for the quarterly pattern of our 2008 earnings guidance is:
1st Quarter: 19% 2nd Quarter: 22% 3rd Quarter: 35% 4th Quarter: 24%
* The 2007 and 2008 GAAP to non-GAAP reconciliation statements can be found on page 10 of this report and all GAAP to non-
GAAP reconciliation statements are available on the Investor Information section of FirstEnergy Corp.'s Web site at
www.firstenergycorp.com/ir.
For additional information, please contact:
Ronald E. Seeholzer Kurt E. Turosky Rey Y. Jimenez
Vice President, Investor Relations Director, Investor Relations Principal, Investor Relations
(330) 384-5783 (330) 384-5500 (330) 761-4239
Consolidated Report to the Financial Community –4th Quarter 2007 2
3. FirstEnergy Corp.
Consolidated Statements of Income
(In millions, except for per share amounts)
Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
2007 2006 Change 2007 2006 Change
Revenues
(1) Electric sales $ 2,882 $ 2,492 $ 390 $ 11,944 $ 10,671 $ 1,273
(2) FE Facilities - - - - 48 (48)
(3) Other 197 188 9 858 782 76
(4) 3,079 2,680 399 12,802 11,501 1,301
Total Revenues
Expenses
(5) Fuel 291 283 8 1,178 1,212 (34)
(6) Purchased power 922 664 258 3,836 3,041 795
(7) Other operating expenses 831 735 96 3,086 2,924 162
(8) FE Facilities - - - - 41 (41)
(9) Provision for depreciation 161 151 10 638 596 42
(10) Amortization of regulatory assets 234 197 37 1,019 861 158
(11) Deferral of new regulatory assets (125) (121) (4) (524) (500) (24)
(12) General taxes 165 167 (2) 754 720 34
(13) Total Expenses 2,479 2,076 403 9,987 8,895 1,092
(14) Operating Income 600 604 (4) 2,815 2,606 209
Other Income (Expense)
(15) Investment income 27 29 (2) 120 149 (29)
(16) Interest expense (182) (193) 11 (775) (721) (54)
(17) Capitalized interest 11 5 6 32 26 6
(18) Subsidiaries' preferred stock dividends - (1) 1 - (7) 7
(19) (144) (160) 16 (623) (553) (70)
Total Other Expense
(20) Income From Continuing Operations
456 444 12 2,192 2,053 139
Before Income Taxes
(21) Income taxes 188 170 18 883 795 88
(22) Income From Continuing Operations 268 274 (6) 1,309 1,258 51
(23) Discontinued operations - - - - (4) 4
(24) Net Income $ 268 $ 274 $ (6) $ 1,309 $ 1,254 $ 55
Basic Earnings Per Common Share:
(25) Income from continuing operations $ 0.88 $ 0.85 $ 0.03 $ 4.27 $ 3.85 $ 0.42
(26) Discontinued operations - - - - (0.01) 0.01
(27) Basic Earnings Per Common Share $ 0.88 $ 0.85 $ 0.03 $ 4.27 $ 3.84 $ 0.43
(28) Weighted Average Number of
(18)
304 318 (14) 306 324
Basic Shares Outstanding
Diluted Earnings Per Common Share:
(29) Income from continuing operations $ 0.87 $ 0.84 $ 0.03 $ 4.22 $ 3.82 $ 0.40
(30) Discontinued operations - - - - (0.01) 0.01
(31) Diluted Earnings Per Common Share $ 0.87 $ 0.84 $ 0.03 $ 4.22 $ 3.81 $ 0.41
(32) Weighted Average Number of
308 321 (13) 310 327 (17)
Diluted Shares Outstanding
______________________________________________________________________________________________________
Consolidated Report to the Financial Community – 4th Quarter 2007 3
4. FirstEnergy Corp.
Consolidated Income Segments
(In millions)
Twelve Months Ended December 31, 2007
Ohio
Energy Competitive Transitional
Energy Reconciling
Delivery Generation
Services (b) Adjustments
Services (a) Services (c) Other (d) Consolidated
Revenues
(1) Electric sales $ 8,069 $ 1,316 $ 2,559 $ - $ - $ 11,944
(2) FE Facilities - - - - - -
(3) Other 657 152 37 39 (27) 858
(4) Internal revenues - 2,901 - - (2,901) -
(5) Total Revenues 8,726 4,369 2,596 39 (2,928) 12,802
Expenses
(6) Fuel 5 1,173 - - - 1,178
(7) Purchased power 3,733 764 2,240 - (2,901) 3,836
(8) Other operating expenses 1,700 1,160 305 15 (94) 3,086
(9) FE Facilities - - - - - -
(10) Provision for depreciation 404 204 - 4 26 638
(11) Amortization of regulatory assets 991 - 28 - - 1,019
(12) Deferral of new regulatory assets (371) - (153) - - (524)
(13) General taxes 623 107 4 1 19 754
(14) Total Expenses 7,085 3,408 2,424 20 (2,950) 9,987
(15) Operating Income 1,641 961 172 19 22 2,815
Other Income (Expense)
(16) Investment income 240 16 1 1 (138) 120
(17) Interest expense (456) (172) (1) (4) (142) (775)
(18) Capitalized interest 11 20 - - 1 32
(19) Subsidiaries' preferred stock dividends - - - - - -
(20) (205) (136) - (3) (279) (623)
Total Other Expense
(21) Income From Continuing Operations
1,436 825 172 16 (257) 2,192
Before Income Taxes
(22) Income taxes 574 330 69 4 (94) 883
(23) 862 495 103 12 (163) 1,309
Income From Continuing Operations
(24) Discontinued operations - - - - - -
(25) Net Income $ 862 $ 495 $ 103 $ 12 $ (163) $ 1,309
(a) Consists of regulated transmission and distribution operations, including transition cost recovery, and provider of last resort generation service for
FirstEnergy's Pennsylvania and New Jersey electric utility subsidiaries.
(b) Consists of unregulated generation and commodity operations, including competitive electric sales, and generation sales to affiliated electric utilities.
(c) Represents provider of last resort generation service by FirstEnergy's Ohio electric utility subsidiaries.
(d) Primarily consists of telecommunications services.
______________________________________________________________________________________________________
Consolidated Report to the Financial Community – 4th Quarter 2007 4
5. FirstEnergy Corp.
Consolidated Income Segments
(In millions)
Twelve Months Ended December 31, 2006
Ohio
Energy Competitive Transitional
Energy Reconciling
Delivery Generation
Services (b) Adjustments
Services (a) Services (c) Other (d) Consolidated
Revenues
(1) Electric sales $ 7,039 $ 1,266 $ 2,366 $ - $ - $ 10,671
(2) FE Facilities - - - 48 - 48
(3) Other 584 163 24 47 (36) 782
(4) Internal revenues 14 2,609 - - (2,623) -
(5) Total Revenues 7,637 4,038 2,390 95 (2,659) 11,501
Expenses
(6) Fuel 5 1,207 - - - 1,212
(7) Purchased power 3,010 605 2,050 - (2,624) 3,041
(8) Other operating expenses 1,585 1,138 247 24 (70) 2,924
(9) FE Facilities - - - 41 - 41
(10) Provision for depreciation 379 190 - 4 23 596
(11) Amortization of regulatory assets 841 - 20 - - 861
(12) Deferral of new regulatory assets (375) - (125) - - (500)
(13) General taxes 599 90 10 (2) 23 720
(14) Total Expenses 6,044 3,230 2,202 67 (2,648) 8,895
(15) Operating Income 1,593 808 188 28 (11) 2,606
Other Income (Expense)
(16) Investment income 328 35 - 1 (215) 149
(17) Interest expense (431) (200) (1) (6) (83) (721)
(18) Capitalized interest 14 12 - - - 26
(19) Subsidiaries' preferred stock dividends (16) - - - 9 (7)
(20) (105) (153) (1) (5) (289) (553)
Total Other Expense
(21) Income From Continuing Operations
1,488 655 187 23 (300) 2,053
Before Income Taxes
(22) Income taxes 595 262 75 (21) (116) 795
(23) Income From Continuing Operations 893 393 112 44 (184) 1,258
(24) Discontinued operations - - - (4) - (4)
(25) Net Income $ 893 $ 393 $ 112 $ 40 $ (184) $ 1,254
(a) Consists of regulated transmission and distribution operations, including transition cost recovery, and provider of last resort generation service for
FirstEnergy's Pennsylvania and New Jersey electric utility subsidiaries.
(b) Consists of unregulated generation and commodity operations, including competitive electric sales, and generation sales to affiliated electric utilities.
(c) Represents provider of last resort generation service by FirstEnergy's Ohio electric utility subsidiaries.
(d) Consists of telecommunications services and non-core businesses divested in 2006 (Facilities Services Group and MYR).
______________________________________________________________________________________________________
Consolidated Report to the Financial Community – 4th Quarter 2007 5
6. FirstEnergy Corp.
Consolidated Income Segments
(In millions)
Twelve Months Ended Dec. 31, 2007 vs. Twelve Months Ended Dec. 31, 2006
Ohio
Energy Competitive Transitional
Energy Reconciling
Delivery Generation
Services (b) Adjustments
Services (a) Services (c) Other (d) Consolidated
Revenues
(1) Electric sales $ 1,030 $ 50 $ 193 $ - $ - $ 1,273
(2) FE Facilities - - - (48) - (48)
(3) Other 73 (11) 13 (8) 9 76
(4) Internal revenues (14) 292 - - (278) -
(5) 1,089 331 206 (56) (269) 1,301
Total Revenues
Expenses
(6) Fuel - (34) - - - (34)
(7) Purchased power 723 159 190 - (277) 795
(8) Other operating expenses 115 22 58 (9) (24) 162
(9) FE Facilities - - - (41) - (41)
(10) Provision for depreciation 25 14 - - 3 42
(11) Amortization of regulatory assets 150 - 8 - - 158
(12) Deferral of new regulatory assets 4 - (28) - - (24)
(13) General taxes 24 17 (6) 3 (4) 34
(14) Total Expenses 1,041 178 222 (47) (302) 1,092
(15) Operating Income 48 153 (16) (9) 33 209
Total Other Expense
(16) Investment income (88) (19) 1 - 77 (29)
(17) Interest expense (25) 28 - 2 (59) (54)
(18) Capitalized interest (3) 8 - - 1 6
(19) Subsidiaries' preferred stock dividends 16 - - - (9) 7
(20) (100) 17 1 2 10 (70)
Total Other Expense
(21) Income From Continuing Operations
(52) 170 (15) (7) 43 139
Before Income Taxes
(22) Income taxes (21) 68 (6) 25 22 88
(23) Income From Continuing Operations (31) 102 (9) (32) 21 51
(24) Discontinued operations - - - 4 - 4
(25) Net Income $ (31) $ 102 $ (9) $ (28) $ 21 $ 55
(a) Consists of regulated transmission and distribution operations, including transition cost recovery, and provider of last resort generation service for
FirstEnergy's Pennsylvania and New Jersey electric utility subsidiaries.
(b) Consists of unregulated generation and commodity operations, including competitive electric sales, and generation sales to affiliated electric utilities.
(c) Represents provider of last resort generation service by FirstEnergy's Ohio electric utility subsidiaries.
(d) Consists of telecommunications services and non-core businesses divested in 2006 (Facilities Services Group and MYR).
______________________________________________________________________________________________________
Consolidated Report to the Financial Community – 4th Quarter 2007 6
7. FirstEnergy Corp.
Financial Statements
(In millions)
Condensed Consolidated Balance Sheets
As of As of
As of June 30, As Dec. 31,
of Dec 31,
Dec. 31,
2007 2006
2007 2006
Assets
Current Assets:
Cash and cash equivalents $ 129 $ 90
Receivables 1,421 1,267
Other 680 726
Total Current Assets 2,230 2,083
Property, Plant and Equipment 15,383 14,667
Investments 3,598 3,534
Deferred Charges and Other Assets 10,857 10,912
Total Assets $ 32,068 $ 31,196
Liabilities and Capitalization
Current Liabilities:
Currently payable long-term debt $ 2,014 $ 1,867
Short-term borrowings 903 1,108
Accounts payable 777 726
Other 1,454 1,554
Total Current Liabilities 5,148 5,255
Capitalization:
Common stockholders' equity (a) 8,977 9,035
Long-term debt and other long-term obligations 8,869 8,535
Total Capitalization 17,846 17,570
Noncurrent Liabilities 9,074 8,371
Total Liabilities and Capitalization $ 32,068 $ 31,196
(a) Reduction reflects $942 million common share repurchase in 2007.
General Information Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
2007 2006 2007 2006
Debt and equity securities redemptions $ (502) $ (1,629) $ (2,067) $ (3,329)
New long-term debt issues $ 427 $ 1,504 $ 1,527 $ 2,739
Short-term debt increase/(decrease) $ 330 $ (96) $ (205) $ 386
Capital expenditures $ 506 $ 325 $ 1,633 $ 1,315
Adjusted Capitalization (Including Off-Balance Sheet Items) - Rating Agency View
As of December 31,
2007 % Total 2006 % Total
Total common equity $ 8,977 40% $ 9,035 42%
Long-term debt (a) 10,486 47% 9,973 47%
Short-term debt 903 4% 1,108 5%
Off-balance sheet debt equivalents:
Sale-leaseback net debt equivalents (b) 1,990 9% 1,231 6%
Total $ 22,356 100% $ 21,347 100%
(a) Includes amounts due to be paid within one year and excludes JCP&L securitization debt of $397 million and $429 million in 2007
and 2006, respectively.
(b) Associated with 1987 and 2007 sale and leaseback transactions.
______________________________________________________________________________________________________
Consolidated Report to the Financial Community – 4th Quarter 2007 7
8. FirstEnergy Corp.
Financial Statements
(In millions)
Condensed Consolidated Statements of Cash Flows
Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
2007 2006 2007 2006
Cash flows from operating activities:
Net income $ 268 $ 274 $ 1,309 $ 1,254
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, amortization, and deferral of regulatory assets 270 227 1,133 957
Deferred purchased power and other costs (81) (122) (346) (445)
Deferred income taxes and investment tax credits* 149 123 (9) 159
Deferred rents and lease market valuation liability (58) (59) (99) (113)
Electric service prepayment programs (23) (19) (75) (64)
Cash collateral, net (18) 21 (68) (77)
Pension trust contribution - - (300) -
Change in working capital and other (22) 251 149 268
485 696 1,694 1,939
Cash flows provided from operating activities
100 (360) (1,342) (804)
Cash flows provided from (used for) financing activities
(486) (287) (313) (1,109)
Cash flows used for investing activities
$ 99 $ 49 $ 39 $ 26
Net increase in cash and cash equivalents
* The Bruce Mansfield sale and leaseback transaction reduced deferred income taxes by $187 million in the twelve months ended December 31, 2007.
Deferrals and Amortizations
Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
2007 2006 Change 2007 2006 Change
Ohio Regulatory Assets - Rate Plans/Transmission
$ 1,788 $ 1,857 $ 1,844 $ 1,924
Deferred Balance - Beginning
Deferral of shopping incentives - - $ - - 3 $ (3)
Interest on shopping incentives 8 10 (2) 36 42 (6)
Deferral of MISO costs and interest 11 4 7 56 15 41
Deferral of RCP distribution reliability costs 23 35 (12) 166 155 11
Deferral of RCP fuel costs 45 19 26 107 113 (6)
$ 87 $ 68 $ 19 $ 365 $ 328 $ 37
Current period deferrals
Amortization
Ohio transition costs amortization $ (69) $ (59) $ (10) $ (291) $ (270) $ (21)
Shopping incentives amortization (29) (28) (1) (123) (121) (2)
MISO costs amortization (9) (5) (4) (29) (20) (9)
Other (7) 4 (11) (23) (12) (11)
$ (114) $ (88) $ (26) $ (466) $ (423) $ (43)
Current period amortization
$ 1,812 $ 1,844 $ 1,812 $ 1,844
Deferred Balance - Ending
Pennsylvania Deferred PJM Costs
$ 227 $ 111 $ 157 $ -
Beginning Balance
Deferrals 30 46 $ (16) 111 157 $ (46)
Interest 1 - 1 4 - 4
Amortizations (4) - (4) (18) - (18)
$ 254 $ 157 $ 254 $ 157
Ending Balance
New Jersey Deferred Energy Costs
$ 330 $ 340 $ 369 $ 541
Beginning Balance
$ (123) $ 39
Deferral (recovery) of energy costs (94) 29 (133) (172)
$ 236 $ 369 $ 236 $ 369
Ending Balance
______________________________________________________________________________________________________
Consolidated Report to the Financial Community – 4th Quarter 2007 8
9. FirstEnergy Corp.
Statistical Summary
ELECTRIC SALES STATISTICS Three Months Ended December 31, Twelve Months Ended December 31,
(in millions of kWhs) 2007 2006 Change 2007 2006 Change
Electric Generation Sales
Retail - Regulated 23,404 23,247 0.7% 97,057 96,125 1.0%
Retail - Competitive 3,056 2,833 7.9% 12,995 11,734 10.7%
Total Retail 26,460 26,080 1.5% 110,052 107,859 2.0%
Wholesale 6,543 5,804 12.7% 24,115 23,083 4.5%
Total Electric Generation Sales 33,003 31,884 3.5% 134,167 130,942 2.5%
Electric Distribution Deliveries
Ohio - Residential 4,244 4,095 3.6% 17,586 16,761 4.9%
- Commercial 3,610 3,521 2.5% 15,107 14,667 3.0%
- Industrial 5,686 5,651 0.6% 23,346 23,324 0.1%
- Other 93 94 -1.1% 372 374 -0.5%
Total Ohio 13,633 13,361 2.0% 56,411 55,126 2.3%
Pennsylvania - Residential 2,927 2,834 3.3% 11,782 11,278 4.5%
- Commercial 2,769 2,643 4.8% 11,268 10,826 4.1%
- Industrial 2,499 2,537 -1.5% 10,229 10,382 -1.5%
- Other 21 21 - 82 82 -
Total Pennsylvania 8,216 8,035 2.3% 33,361 32,568 2.4%
New Jersey - Residential 2,222 2,101 5.8% 9,839 9,548 3.0%
- Commercial 2,423 2,247 7.8% 9,867 9,450 4.4%
- Industrial 719 689 4.4% 2,885 2,831 1.9%
- Other 22 21 4.8% 88 86 2.3%
Total New Jersey 5,386 5,058 6.5% 22,679 21,915 3.5%
Total Residential 9,393 9,030 4.0% 39,207 37,587 4.3%
Total Commercial 8,802 8,411 4.6% 36,242 34,943 3.7%
Total Industrial 8,904 8,877 0.3% 36,460 36,537 -0.2%
Total Other 136 136 - 542 542 -
Total Distribution Deliveries 27,235 26,454 3.0% 112,451 109,609 2.6%
Electric Sales Shopped
Ohio - Residential 518 519 -0.2% 2,201 2,289 -3.8%
- Commercial 825 878 -6.0% 3,534 3,787 -6.7%
- Industrial 645 673 -4.2% 2,689 2,874 -6.4%
Total Ohio 1,988 2,070 -4.0% 8,424 8,950 -5.9%
Pennsylvania - Residential 29 - - 73 - -
- Commercial 186 2 - 632 4 -
- Industrial 507 132 284.1% 1,895 501 278.2%
Total Pennsylvania 722 134 438.8% 2,600 505 414.9%
New Jersey - Residential - - - - - -
- Commercial 559 478 16.9% 2,156 1,926 11.9%
- Industrial 559 525 6.5% 2,200 2,103 4.6%
Total New Jersey 1,118 1,003 11.5% 4,356 4,029 8.1%
Total Electric Sales Shopped 3,828 3,207 19.4% 15,380 13,484 14.1%
Operating Statistics
Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
2007 2006 2007 2006
Capacity Factors:
Fossil - Baseload 81% 83% 80% 89%
Fossil - Load Following 67% 69% 71% 69%
Nuclear 88% 85% 89% 87%
Generation Output:
Fossil - Baseload 40% 41% 39% 42%
Fossil - Load Following 22% 23% 23% 22%
Peaking 0% 0% 0% 0%
Nuclear 38% 36% 38% 36%
Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
Weather 2007 2006 Normal 2007 2006 Normal
Composite Heating-Degree-Days 1,824 1,715 1,977 5,443 4,900 5,534
Composite Cooling-Degree-Days 70 5 15 1,039 892 921
______________________________________________________________________________________________________
Consolidated Report to the Financial Community – 4th Quarter 2007 9
10. FirstEnergy Corp.
2007 EPS Reconciliations
(In millions, except for per share amounts)
Special Items
Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
2007 2006 2007 2006
Pre-tax Items - Income Increase (Decrease)
Gain on Non-Core Asset Sales of:
Gain on sale of First Communications (h) $ - $ - $ 21 $ -
All other (a)(f) - 11 - 12
Total Gain on Non-Core Asset Sales - 11 21 12
Saxton decommissioning costs regulatory assets (b) - - 27 -
Trust securities impairment (c) (10) (13) (26) (13)
Marbel property tax liability adjustment - 3 - 3
FE Facilities sales/impairment (d)(e)(g) - - - (13)
PA NUG purchased power adjustment applicable to 2005 (i) - - - (10)
Total-Pretax Items $ (10) $ 1 $ 22 $ (21)
EPS Effect $ (0.02) $ 0.01 $ 0.04 $ (0.04)
(a) Included in quot;Other operating expensesquot; (f) Before first quarter 2006 tax benefit of $2.5 million
(b) Included in quot;Deferral of new regulatory assetsquot; (g) Non-tax deductible
(c) Included in quot;Investment incomequot; (h) Included in quot;Other Revenuequot;
(d) Included in quot;FE Facilities expensesquot; (i) Included in quot;Purchased Powerquot;
(e) Included in quot;Discontinued Operationsquot;
2007 Earnings Per Share (EPS)
(Reconciliation of GAAP to Non-GAAP)
Three Months Twelve Months
Ended Dec. 31 Ended Dec. 31
$ 0.88 $ 4.27
Basic EPS (GAAP basis)
Excluding Special Items:
New regulatory asset authorized by PPUC - (0.05)
Gain on sale of non-core assets - (0.04)
Trust securities impairment 0.02 0.05
$ 0.90 $ 4.23
Basic EPS (Non-GAAP basis)
Non-GAAP 2008 Basic Earnings Per Share Guidance
(Reconciliation of GAAP to Non-GAAP)
2008 EPS
$4.23 - $4.43
Basic EPS (GAAP basis)
Excluding Special Items (0.08)
$4.15 - $4.35
Basic EPS (Non-GAAP basis)
______________________________________________________________________________________________________
Consolidated Report to the Financial Community – 4th Quarter 2007 10
11. RECENT DEVELOPMENTS
Ohio Substitute Senate Bill 221
On October 31, 2007, the Ohio Senate passed Substitute Senate Bill 221 which seeks to revise state energy policy.
Among other things, the bill outlines a process for establishing electricity prices for generation beginning in 2009,
and includes a requirement that at least 25% of the state’s electricity come from advanced energy technologies by
2025, with at least one-half of the 25% requirement coming from renewable resources.
The Ohio House of Representatives referred the bill to the House Public Utilities Committee which conducted
various hearings between November 2007 and February 2008. During the November 14, 2007, hearing, President
and Chief Executive Officer Tony Alexander provided testimony on the history and status of deregulation in Ohio.
In his remarks, Mr. Alexander indicated that Ohioans should have the opportunity to participate in the competitive
electricity marketplace as provided for under Ohio's 1999 deregulation law, Senate Bill 3, which set the stage for
long-term price moderation as well as more reliable and responsive service for Ohio's customers. On November
28, 2007, Senior Vice President and General Counsel Leila Vespoli provided testimony on the bill’s alternative
options for establishing electric generation pricing in 2009. In her remarks, Ms. Vespoli expressed the industry’s
concerns with Substitute Senate Bill 221, saying the legislation should be modified to provide the PUCO with
expanded regulatory tools and statutory authority to negotiate rate plans, and to include a true market rate option.
On January 16, 2008, Vice President of Rates and Regulatory Affairs David Blank provided testimony on special
discounted-rate contracts indicating that the rationale to support their continued use no longer exists.
Ohio Distribution Rate Case Filing
On December 4, 2007, the PUCO Staff issued its Staff Reports containing the results of their investigation into the
distribution rate requests for FirstEnergy subsidiaries Ohio Edison Company, The Cleveland Electric Illuminating
Company, and The Toledo Edison Company (collectively the Ohio Companies). In its Reports, the PUCO Staff
recommended a distribution rate increase of $161 million to $180 million compared to the Ohio Companies’
request of $332 million. However, during the evidentiary hearings, the PUCO Staff submitted testimony
decreasing their recommended revenue increase to a range of $114 million to $132 million. The revisions
primarily related to property tax, depreciation, and deferred tax corrections, as well as other miscellaneous
adjustments. Key differences between the Staff Reports’ recommendation and the Ohio Companies’ request
include: matters to be considered in separate proceedings ($115 million), and a recommended return on equity of
10% to 11% versus the Ohio Companies’ request of 11.75% ($16 million to $35 million).
On January 3, 2008, the Ohio Companies and intervening parties filed objections to the Staff Reports and on
January 10, 2008, the Ohio Companies filed supplemental testimony, while intervening parties filed their direct
testimony. Evidentiary hearings began on January 29 and are expected to conclude in late February 2008. The
PUCO is expected to render its decision during the 2nd or 3rd quarter of 2008.
Ohio Supreme Court Remand on Rate Certainty Plan
On January 9, 2008, the PUCO issued its Finding and Order on the Ohio Companies’ application on remand
seeking to recover incremental fuel costs deferred in 2006 and 2007, and fuel costs that would otherwise be
deferred in 2008, via two generation-related fuel cost tariff riders. The Order approved the implementation of the
tariff rider to recover actual incremental fuel costs incurred from January 1, 2008 through December 31, 2008
(estimated to be $167 million), but directed the Ohio Companies to file a separate application with an alternative
recovery mechanism to collect the 2006 and 2007 deferred fuel costs and associated carrying charges
($220 million balance as of December 31, 2007). On February 8, 2008, the Ohio Companies filed an application
proposing to recover the deferred fuel costs and carrying charges for 2006 and 2007 via a separate fuel rider, with
alternative options for the recovery period ranging from 5 to 25 years. This second application is pending before
the PUCO.
Consolidated Report to the Financial Community – 4th Quarter 2007 11
12. Penn Power Default Service Plan
On October 30, 2007, an Administrative Law Judge (ALJ) recommended that the Pennsylvania Public Utility
Commission (PPUC) approve the Joint Petition for Settlement for Pennsylvania Power Company’s (Penn Power)
Interim Default Service Supply Plan for the period covering June 1, 2008 through May 31, 2011. On December
20, 2007, the PPUC accepted all provisions of the Settlement Agreement except for the provision related to the
procurement of default service supply for residential customers, which was remanded to the ALJ for further
proceedings. The PPUC encouraged Penn Power to further consider adopting a portfolio approach that
incorporates the use of a variety of energy products in lieu of load-following, full requirements contracts for
default service procurement for residential customers. Under the terms of the Settlement Agreement, the default
service procurement for small commercial customers will be done with multiple requests for proposals (RFPs),
while the default service procurement for large commercial and industrial customers will utilize hourly pricing.
Bids in the first RFP for small commercial load were received on February 20, 2008. In February 2008, parties
filed direct and rebuttal testimony in the remand proceeding for the residential procurement approach. An
evidentiary hearing is scheduled for February 26, 2008, and this matter is expected to be presented to the PPUC
for its consideration by March 13, 2008.
Met-Ed and Penelec NUG Accounting Case
On November 8, 2007, the PPUC denied Metropolitan Edison Company’s and Pennsylvania Electric Company’s
request to modify their Non-Utility Generation (NUG) stranded cost accounting methodology to eliminate
reductions of the deferred cost balance during periods in which market prices exceeded NUG payments.
Nuclear Generation Record Output
FirstEnergy Nuclear Operating Company (FENOC) set a new annual generation output record of 30.3 million
megawatt-hours, surpassing FENOC’s previous best of 29.9 million megawatt-hours, set in 2004. Top-quartile
capability factor performance at Beaver Valley Unit 2 and Davis-Besse of 99.8 percent and 98.6 percent,
respectively, along with unit uprates of 43 MW and 24 MW at our Beaver Valley Units 1 and 2, respectively,
contributed to this accomplishment.
Nuclear Operations Update
On February 14, 2008, the 893-MW Davis-Besse Nuclear Power Station returned to service following completion
of its scheduled refueling outage, which began on December 30, 2007, and replacement of a component on the
generator rotor which was damaged during the outage. In addition to replacing 76 of the 177 fuel assemblies,
several improvement projects were completed, including rewinding the turbine generator and reinforcing welds on
plant equipment.
On December 10, 2007, the 1,258-MW Perry Nuclear Plant returned to service following the completion of
repairs to the Digital Feedwater Control and Reactor Core Isolation Cooling systems. The plant experienced an
automatic shutdown on November 28 due to two failed power supplies in the Digital Feedwater Control system.
A Nuclear Regulatory Commission special inspection team monitored the plant’s repair and restart efforts.
Power Uprates
Mansfield Unit 3 achieved a power uprate of 30 MW during the fourth quarter of 2007 after returning to service
following a scheduled maintenance outage. This uprate was achieved in support of FirstEnergy’s operating
strategy to maximize the full potential of its existing generation assets. This brings the total amount of generating
capacity added through power uprates in 2007 to 105 MW. Our supply portfolio was also enhanced during the
year through the reduction of seasonal derates by 149 MW at our peaking units and through long-term contracts to
purchase the output of 115 MW from wind generators.
Consolidated Report to the Financial Community – 4th Quarter 2007 12
13. Partially Complete Combined-Cycle Generating Plant Acquired
On January 28, 2008, FirstEnergy Generation Corp. (FGCO) entered into definitive agreements to acquire a
partially complete 707-MW natural gas fired generating plant in Fremont, Ohio from Calpine Corporation for
$253.6 million. Construction of the facility began in September 2001 and aggregate construction costs expended
to date are approximately $300 million. The facility includes two combined-cycle combustion turbines and a
steam turbine capable of producing 544 MW of load-following capacity and 163 MW of peaking capacity. In
court documents, Calpine has estimated that the plant is 70% complete and could become operational within 12 to
18 months. Based on those documents, FGCO estimates the additional expenditures to complete the Facility to be
approximately $150 million to $200 million. While FGCO believes these timing and cost estimates to be
accurate, the final cost and timeframe for construction are subject to a pending engineering study. The plant is
connected to both the Midwest Independent Transmission System Operator and the PJM Interconnection. The
acquisition will enhance the diversity of FirstEnergy’s generation fleet and further reduce its average carbon
dioxide emission rate.
Common Stock Dividend Increase
On December 18, 2007, FirstEnergy’s Board of Directors declared a quarterly dividend of $0.55 per share on
outstanding common stock, a 10% increase, payable March 1, 2008. The new indicated annual dividend is $2.20
per share. This action brings FirstEnergy’s cumulative dividend increase to 47% since the beginning of 2005, and
is consistent with FirstEnergy’s policy, which targets sustainable annual dividend growth and a payout that is
appropriate for FirstEnergy’s level of earnings.
Share Repurchase Program Completed
On December 10, 2007, Morgan Stanley completed its acquisition of common shares under FirstEnergy’s
accelerated share repurchase program for 14.4 million shares executed in March 2007. FirstEnergy subsequently
paid Morgan Stanley approximately $51 million for a purchase price adjustment (direct charge to common
stockholders’ equity) that resulted in a final purchase price of $942 million, or $65.54 per share.
Extension and Amendment of Credit Facility
On November 20, 2007, FirstEnergy and certain of its subsidiaries, including all of its operating utility
subsidiaries, agreed, pursuant to a Consent and Amendment with the lenders under the $2.75 billion credit facility
dated as of August 24, 2006, to extend the termination date of the facility for one year to August 24, 2012. The
parties also agreed to amendments that will permit the FirstEnergy parties to request an unlimited number of
additional one-year extensions of the facility termination date upon shorter notice than provided by the original
facility terms, which permitted only two extensions. In addition, the amendments increase FirstEnergy Solutions
Corp.’s (FES) borrowing sub-limit under the credit facility to up to $1 billion and remove any requirements for the
delivery of a FirstEnergy guaranty of FES’ obligations.
Establishment of the FirstEnergy Fund for Advanced Energy Research
On December 13, 2007, FirstEnergy announced a $2 million pledge to The University of Akron to establish the
FirstEnergy Fund for Advanced Energy Research. The fund will be used to create the FirstEnergy Advanced
Energy Research Center at the University and support development of carbon capture and coal-based fuel cells.
The Advanced Energy Research Center initially will focus on development of carbon capture technologies that
could be used by fossil-fueled power plants and the development of coal-based fuel cells for commercial use.
Consolidated Report to the Financial Community – 4th Quarter 2007 13
14. Forward-looking Statements. This Consolidated Report to the Financial Community includes forward-looking statements based on information currently
available to management. Such statements are subject to certain risks and uncertainties. These statements include declarations regarding our, or our
management’s, intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,”
“believe,” “estimate” and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other
factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Actual results may differ materially due to the speed and nature of increased competition in the
electric utility industry and legislative and regulatory changes affecting how generation rates will be determined following the expiration of existing rate plans
in Ohio and Pennsylvania, economic or weather conditions affecting future sales and margins, changes in markets for energy services, changing energy and
commodity market prices, replacement power costs being higher than anticipated or inadequately hedged, the continued ability of FirstEnergy’s regulated
utilities to collect transition and other charges or to recover increased transmission costs, maintenance costs being higher than anticipated, other legislative and
regulatory changes including revised environmental requirements and possible greenhouse gas emissions regulation, the uncertainty of the timing and amounts
of the capital expenditures needed to, among other things, implement the Air Quality Compliance Plan (including that such amounts could be higher than
anticipated) or levels of emission reductions related to the Consent Decree resolving the New Source Review litigation or other potential regulatory initiatives,
adverse regulatory or legal decisions and outcomes (including, but not limited to, the revocation of necessary licenses or operating permits and oversight by the
Nuclear Regulatory Commission including, but not limited to, the Demand for Information issued to FENOC on May 14, 2007) as disclosed in our SEC filings,
the timing and outcome of various proceedings before the PUCO (including, but not limited to, the Distribution Rate Cases and the generation supply plan filing
for the Ohio Companies and the successful resolution of the issues remanded to the PUCO by the Supreme Court of Ohio regarding the Rate Stabilization Plan
and the Rate Certainty Plan, including the deferral of fuel costs) and the PPUC (including the resolution of the Petitions for Review filed with the
Commonwealth Court of Pennsylvania with respect to the transition rate plan for Met-Ed and Penelec), the continuing availability of generating units and their
ability to continue to operate at or near full capacity, the ability to comply with applicable state and federal reliability standards, the inability to accomplish or
realize anticipated benefits from strategic goals (including employee workforce initiatives), the ability to improve electric commodity margins and to experience
growth in the distribution business, changing market conditions that could affect the value of assets held in our nuclear decommissioning trust fund, pension
fund and other trust funds, the ability to access the public securities and other capital markets and the cost of such capital, the risks and other factors discussed
from time to time in our SEC filings, and other similar factors. The foregoing review of factors should not be construed as exhaustive. New factors emerge
from time to time, and it is not possible for us to predict all such factors, nor can we assess the impact of any such factor on our business or the extent to which
any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. Dividends declared from
time to time on FirstEnergy's common stock during any annual period may in aggregate vary from the indicated amounts due to circumstances considered by
FirstEnergy's Board of Directors at the time of the actual declarations. Also, a security rating is not a recommendation to buy, sell or hold securities, and it may
be subject to revision or withdrawal at any time and each such rating should be evaluated independently of any other rating. We expressly disclaim any current
intention to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.
Consolidated Report to the Financial Community – 4th Quarter 2007 14