1) Southern Company is one of the largest energy companies in the world, focused on producing and supplying electricity through both regulated and competitive businesses.
2) The company achieved record earnings in 1999 of $1.3 billion but saw its stock price decline, which it attributes partly to investor focus on internet companies.
3) Southern Company aims to grow its competitive energy business, which currently contributes around 35% of earnings, to 50% by 2003 through expanding generation capacity and long-term contracts in key markets like the Southeastern US.
The document is Southern Company's 2003 annual report. It summarizes the company's strong financial and operational performance in 2003, with earnings of $1.47 billion, or $2.03 per share. It discusses the company's focus on its core businesses of power generation and delivery in the Southeast US. The report also announces that Chairman and CEO Allen Franklin will retire in July 2004, and that David Ratcliffe will succeed him as president in April and CEO in July. Ratcliffe expresses confidence in Southern Company's strategy and people to continue its record of success.
United Health Group Consolidated Financial Statementsfinance3
UnitedHealth Group reported strong financial results in 2001 with record revenues of $23.5 billion, up 11% from 2000. Net earnings reached a record $913 million, up 30% from 2000. All business segments experienced revenue and earnings growth. The consolidated operating margin increased to 6.7% due to productivity gains and a shift to higher-margin fee-based products. Return on shareholders' equity improved to 24.5% from 19.0% in 2000, demonstrating superior performance.
allstate Quarterly Investor Information 2006 4th Earnings Press Releasefinance7
Allstate reported 2006 fourth quarter net income of $1.213 billion and operating income of $1.121 billion. Net income per share was $1.93 and operating income per share was $1.78. Catastrophe losses were $279 million for the quarter, down from $657 million in the prior year. The property-liability combined ratio was 85.7% for the quarter and 83.6% for the year, benefiting from lower catastrophe losses. Allstate will provide an outlook for the 2007 property-liability combined ratio excluding catastrophes of 84-86%.
Satellite TV dishes on tens of millions of homes and seamless global telephone service are some developing markets driving a $70 billion satellite and wireless industry. Hughes is uniquely positioned to take advantage of opportunities in this industry due to its leadership in satellite and wireless systems, proven record of innovation, strong finances, and highly skilled workforce.
The document discusses Gannett's strategic plan and progress in 2006 toward transforming the company to embrace changes in consumer demand and technology. Key points:
- Gannett formed Gannett Digital to grow its digital business and capture a share of the growing online advertising market.
- Gannett made acquisitions and partnerships to enhance its capabilities in areas like local search, mobile, video and rich media advertising.
- The strategic plan focused on innovation, transforming newsrooms into information centers, and developing leadership. Significant progress was made in 2006 on these initiatives.
- Financial results for 2006 were strong, with operating revenues reaching a record $8.03 billion, though operating income declined slightly.
Citigroup reported financial results for the first quarter of 2007, with the following highlights:
- Net income decreased 11% to $5.012 billion compared to $5.639 billion in the first quarter of 2006.
- Revenues increased 15% to $25.459 billion from $22.183 billion, driven by growth in Markets & Banking and Global Consumer segments.
- Markets & Banking revenues increased 23% to $8.957 billion, while Global Consumer revenues grew 10% to $13.106 billion.
- Results were impacted by a $871 million after-tax restructuring charge related to expense reduction initiatives.
The 2007 annual report discusses Gannett Co., Inc.'s financial results for 2007 and goals for the future. Key points include:
- Revenues decreased 5.2% to $7.4 billion in 2007 due to economic downturns impacting the real estate and automotive industries which heavily affected some of Gannett's major markets.
- Net income per share was $4.17, which included a $0.22 per share impairment charge.
- Gannett's digital businesses continued growing, reaching almost $0.5 billion in revenue, despite challenges from the economic cycle.
- Going forward, Gannett aims to strengthen its digital presence and local news coverage,
- SunTrust reported second quarter earnings of $1.53 per share, down from $1.89 per share in the second quarter of 2007, due to higher loan loss provisions, credit-related expenses, and valuation losses. These factors were partially offset by gains from selling Coca-Cola stock and a non-strategic subsidiary.
- The company completed transactions involving its Coca-Cola stock holdings that increased its regulatory capital ratio by an estimated 68 basis points as of June 30, 2008.
- Credit metrics continued to deteriorate in the quarter, though at a slower pace, with net charge-offs increasing 8.6% and the allowance for loan losses rising to 1.46% of total loans.
The document is Southern Company's 2003 annual report. It summarizes the company's strong financial and operational performance in 2003, with earnings of $1.47 billion, or $2.03 per share. It discusses the company's focus on its core businesses of power generation and delivery in the Southeast US. The report also announces that Chairman and CEO Allen Franklin will retire in July 2004, and that David Ratcliffe will succeed him as president in April and CEO in July. Ratcliffe expresses confidence in Southern Company's strategy and people to continue its record of success.
United Health Group Consolidated Financial Statementsfinance3
UnitedHealth Group reported strong financial results in 2001 with record revenues of $23.5 billion, up 11% from 2000. Net earnings reached a record $913 million, up 30% from 2000. All business segments experienced revenue and earnings growth. The consolidated operating margin increased to 6.7% due to productivity gains and a shift to higher-margin fee-based products. Return on shareholders' equity improved to 24.5% from 19.0% in 2000, demonstrating superior performance.
allstate Quarterly Investor Information 2006 4th Earnings Press Releasefinance7
Allstate reported 2006 fourth quarter net income of $1.213 billion and operating income of $1.121 billion. Net income per share was $1.93 and operating income per share was $1.78. Catastrophe losses were $279 million for the quarter, down from $657 million in the prior year. The property-liability combined ratio was 85.7% for the quarter and 83.6% for the year, benefiting from lower catastrophe losses. Allstate will provide an outlook for the 2007 property-liability combined ratio excluding catastrophes of 84-86%.
Satellite TV dishes on tens of millions of homes and seamless global telephone service are some developing markets driving a $70 billion satellite and wireless industry. Hughes is uniquely positioned to take advantage of opportunities in this industry due to its leadership in satellite and wireless systems, proven record of innovation, strong finances, and highly skilled workforce.
The document discusses Gannett's strategic plan and progress in 2006 toward transforming the company to embrace changes in consumer demand and technology. Key points:
- Gannett formed Gannett Digital to grow its digital business and capture a share of the growing online advertising market.
- Gannett made acquisitions and partnerships to enhance its capabilities in areas like local search, mobile, video and rich media advertising.
- The strategic plan focused on innovation, transforming newsrooms into information centers, and developing leadership. Significant progress was made in 2006 on these initiatives.
- Financial results for 2006 were strong, with operating revenues reaching a record $8.03 billion, though operating income declined slightly.
Citigroup reported financial results for the first quarter of 2007, with the following highlights:
- Net income decreased 11% to $5.012 billion compared to $5.639 billion in the first quarter of 2006.
- Revenues increased 15% to $25.459 billion from $22.183 billion, driven by growth in Markets & Banking and Global Consumer segments.
- Markets & Banking revenues increased 23% to $8.957 billion, while Global Consumer revenues grew 10% to $13.106 billion.
- Results were impacted by a $871 million after-tax restructuring charge related to expense reduction initiatives.
The 2007 annual report discusses Gannett Co., Inc.'s financial results for 2007 and goals for the future. Key points include:
- Revenues decreased 5.2% to $7.4 billion in 2007 due to economic downturns impacting the real estate and automotive industries which heavily affected some of Gannett's major markets.
- Net income per share was $4.17, which included a $0.22 per share impairment charge.
- Gannett's digital businesses continued growing, reaching almost $0.5 billion in revenue, despite challenges from the economic cycle.
- Going forward, Gannett aims to strengthen its digital presence and local news coverage,
- SunTrust reported second quarter earnings of $1.53 per share, down from $1.89 per share in the second quarter of 2007, due to higher loan loss provisions, credit-related expenses, and valuation losses. These factors were partially offset by gains from selling Coca-Cola stock and a non-strategic subsidiary.
- The company completed transactions involving its Coca-Cola stock holdings that increased its regulatory capital ratio by an estimated 68 basis points as of June 30, 2008.
- Credit metrics continued to deteriorate in the quarter, though at a slower pace, with net charge-offs increasing 8.6% and the allowance for loan losses rising to 1.46% of total loans.
This annual report summarizes Corning Inc.'s financial performance in 2001, which saw a significant downturn from 2000 due to challenging conditions in the telecommunications sector and global economic weakness. Net sales fell 12% to $6.3 billion and the company reported a net loss of $5.5 billion compared to net income of $409 million in 2000. Corning took actions to reduce costs, including eliminating 12,000 jobs and closing plants. However, the company ended 2001 with $2.2 billion in cash and believes it is well positioned financially and strategically for long-term growth opportunities in key markets like optical fiber and displays.
The document is Sempra Energy's 1999 annual report. It summarizes the company's strong financial performance in 1999, exceeding earnings growth targets. However, total shareholder return did not increase. As a result, Sempra Energy is undertaking a strategic realignment to become a leading global energy services company focused on meeting changing customer needs. Key steps include investments in growing domestic and international businesses and a reduced dividend to increase financial flexibility for growth.
This document provides a summary of Lear Corporation's third-quarter 2006 results, fourth-quarter 2006 guidance, and preliminary outlook for 2007. Key points include:
- Third-quarter net sales were $4.1 billion and core operating earnings were $46.2 million.
- Fourth-quarter 2006 guidance projects net sales of $4.1 billion and core operating earnings between $80-110 million.
- A preliminary outlook for 2007 anticipates annual industry production in line with 2006, global new business of $800 million, and free cash flow turning solidly positive.
allstate Quarterly Investor Information 2006 2nd Earnings Press Releasefinance7
Allstate reported an increase in net income and operating income for the second quarter of 2006 compared to the same period in 2005. Net income increased 5% and operating income increased nearly 14%, while net income per share grew 10.5% and operating income per share increased 20.5%. Allstate also increased its guidance for full-year 2006 operating income per share based on strong second quarter results and expectations for the remainder of the year.
The Progressive Corporation announced that it will host its 2006 Investor Relations Meeting on June 15th via webcast. Information distributed at the meeting will be made available on the company's website. Progressive also reported its May 2006 results, including a 3% increase in net premiums written and earned compared to May 2005. Net income remained flat at $125.8 million. The combined ratio was 86.7, up 0.9 points from the prior year.
southern 2000 Editorial Section, color typefinance17
Southern Company achieved record financial results in 2000, with earnings from operations of $1.40 billion, up 7.1% from 1999. A key event was the successful IPO and planned spinoff of Southern Energy, now called Mirant Corporation. Southern Company Chairman Allen Franklin reviews the year's accomplishments and outlines the company's strategic focus on its regulated utility business in the Southeast and growing its competitive generation business in the "Super Southeast" region, with a goal of doubling earnings from this segment within five years through capacity additions.
southern 2000 Editorial Section, black typefinance17
Southern Company achieved record financial results in 2000, with earnings from operations of $1.40 billion, up 7.1% from 1999. A key event was the successful IPO and planned spinoff of Southern Energy, now called Mirant Corporation. Southern Company Chairman Allen Franklin reviews the year's accomplishments and outlines the company's strategic focus on its regulated utility business in the Southeast region and growing its competitive generation and energy services businesses. Southern Company is well positioned for continued growth and shareholder value creation in the fast-growing Southeast U.S. energy market that it knows best.
This annual report discusses Xcel Energy's strong performance and opportunities for growth in 2000 following its merger. Key points include:
1) Xcel Energy met or exceeded its financial and operational targets for the merger in its first year. This included achieving $2.12 in earnings per share, exceeding its $1.77 target.
2) The report is optimistic about Xcel Energy's future, citing its large size and scope, growing customer base, and opportunities through its subsidiary NRG Energy.
3) Challenges in California and the need for a national energy policy are acknowledged, but the report expresses confidence in Xcel Energy's ability to thrive through innovative approaches and positioning its businesses for competition.
ONEOK is an energy company founded in 1906 that markets and trades natural gas and electricity. In 2001:
- Earnings declined due to falling natural gas prices, an economic recession, and ONEOK subsidiary Oklahoma Natural Gas being denied recovery of $34.6 million in gas costs.
- The collapse of Enron, a major energy trader, negatively impacted ONEOK and other companies by failing to pay for commodity transactions. ONEOK estimated its total exposure to Enron's bankruptcy was less than $40 million.
- ONEOK's accounting practices and culture differ significantly from Enron, which aggressively used mark-to-market accounting and off-balance sheet financing vehicles to inflate assets.
allstate Quarter Information 2008 3rd Earnings Press Releasefinance7
- Allstate reported a net loss for Q3 2008 due to catastrophe losses from Hurricanes Ike and Gustav totaling $1.8 billion and net realized capital losses of $1.3 billion from declines in credit markets.
- Catastrophe losses would have been $1.4 billion higher without risk mitigation programs that reduced coastal exposure.
- Net realized capital losses were partially offset by gains from macro-hedging programs.
- Underlying property-casualty business margins remained strong and the company maintained strong liquidity and capital positions.
C.H. Robinson achieved strong success in 2007 despite challenging market conditions. The company grew gross profits 14.9% to $1.2 billion through its diverse mix of transportation services and customer relationships. Its non-asset based model and over 7,300 employees enabled it to efficiently manage over 6.5 million shipments. Looking ahead, C.H. Robinson is well positioned for continued growth given industry trends, its financial strength with no debt and $455 million in cash, and opportunities to expand internationally and through acquisitions.
Omnicom Group Inc. reported financial results for the fourth quarter and full year of 2007. Net income increased 13.2% in the fourth quarter and 12.9% for the full year. Revenue increased 12.7% in the fourth quarter to $3.6 billion and 11.6% for the full year to $12.7 billion. Domestic revenue rose 9.5% in the fourth quarter and 8.2% for the full year, while international revenue increased 16.3% and 15.6% respectively.
The Progressive Corporation reported strong financial results for the first half of 2004, with net income of $846.3 million, up 46% from the same period in 2003. Net premiums earned grew 18% to $6.3 billion due to a 12% increase in net premiums written. The combined ratio was 84.3%, substantially better than industry averages. Progressive expects growth to slow as fewer customers actively shop for better rates in the stable market conditions. The company made progress on initiatives to improve claims handling and customer service.
The document is FedEx Corporation's 2000 Annual Report. It summarizes that in FY2000, FedEx saw a 9% increase in revenue to $18.3 billion and a 9% increase in net income to $688 million. Earnings per share grew 10% to $2.32. It also outlines FedEx's new strategic plan called "Project ARISE" to strengthen the FedEx brand and provide more integrated services and solutions for customers. The plan aims to drive revenue and profit growth through cross-selling services, expanding international business, leveraging e-commerce, and providing supply chain solutions.
This document summarizes Bank of America's second quarter 2009 results. It reported net income of $3.2 billion and diluted EPS of $0.33. Revenue was $33.1 billion. Provision for credit losses was $13.4 billion as the allowance was strengthened for continued economic deterioration. Large items impacting earnings included gains from the sale of China Construction Bank shares and a merchant processing business, but losses from derivative adjustments and capital markets disruption charges. The company continued operating in a challenging economic environment.
The document summarizes Office Depot's fourth quarter 2008 earnings conference call. It reported a GAAP loss of $1.54 billion or $5.64 per share due to impairment charges. Excluding charges, the loss was $199 million or $0.73 per share. Total sales declined 15% to $3.3 billion due to economic challenges. It is taking actions like store closures to improve profitability in 2009.
The document outlines the corporate governance guidelines of Office Depot, Inc. It discusses [1] the composition of the board, including the election of chair and lead director, size of the board, and selection of board candidates; [2] requirements for board membership including independence, retirement age, and term limits; and [3] processes for board meetings, including agenda setting, executive sessions, and interaction with management and advisors. The guidelines are intended to assist the board in exercising its responsibilities under relevant laws and regulations.
Southern Company reported third quarter 2004 earnings of $644.5 million, meeting expectations. Earnings for the first nine months of 2004 were $1.33 billion, compared to $1.27 billion in the same period in 2003 excluding a one-time gain. Mild weather and increased industrial sales offset some of the financial impact of Hurricane Ivan, which left 1.6 million customers without power but was restored within a week for 94% of customers. Southern Company served about 70,000 more customers as of September 30 than the previous year and expects continued long-term customer growth of 1.5% annually. Capital expenditures are projected to be $7 billion from 2004 to 2006 focused on regulated infrastructure including environmental and transmission/distribution
This document is PACCAR Inc's quarterly report (Form 10-Q) filed with the SEC for the quarter ended June 30, 2003. It includes:
1) Financial statements including income statements, balance sheets, and cash flow statements for the quarter and year-to-date.
2) Notes to the financial statements providing additional details on accounting policies, inventory valuation, and new accounting standards.
3) Certification by management of the accuracy of the financial statements and disclosure of any material changes to internal controls.
The report provides investors with PACCAR's consolidated financial position and operating results for the quarter in compliance with SEC regulations.
Computer Sciences Corporation (CSC) reported a 20% increase in earnings per share and a 21.7% increase in net income for the first quarter of fiscal year 2000 compared to the same quarter the previous year. Revenue increased 17.6% to $2.06 billion driven by increased demand for outsourcing, enterprise solutions, e-business, and systems integration. CSC also announced over $4.7 billion in new business awards during the quarter and expects e-business revenue to triple to nearly $600 million for the full fiscal year.
Southern Company is a premier energy company serving 4 million customers across 4 southeastern states. In 2002, it achieved earnings of $1.32 billion and increased its annual dividend to $1.37 per share. Southern Company continues to perform well through focused execution of its three-part strategy involving regulated utilities, competitive generation, and energy products/services. It aims to lead the industry in customer satisfaction while delivering sustainable growth and dividends to shareholders.
Citigroup reported record earnings from continuing operations for the first quarter of 2006, with net income of $5.64 billion, up 4% from the previous year. International earnings grew 47% due to record international revenues increasing 19%. Several business segments saw record results, including corporate and investment banking with revenues up 21% and international revenues in that segment up 34%. The company opened 238 new branches during the quarter as it continued expanding its distribution internationally.
This annual report summarizes Corning Inc.'s financial performance in 2001, which saw a significant downturn from 2000 due to challenging conditions in the telecommunications sector and global economic weakness. Net sales fell 12% to $6.3 billion and the company reported a net loss of $5.5 billion compared to net income of $409 million in 2000. Corning took actions to reduce costs, including eliminating 12,000 jobs and closing plants. However, the company ended 2001 with $2.2 billion in cash and believes it is well positioned financially and strategically for long-term growth opportunities in key markets like optical fiber and displays.
The document is Sempra Energy's 1999 annual report. It summarizes the company's strong financial performance in 1999, exceeding earnings growth targets. However, total shareholder return did not increase. As a result, Sempra Energy is undertaking a strategic realignment to become a leading global energy services company focused on meeting changing customer needs. Key steps include investments in growing domestic and international businesses and a reduced dividend to increase financial flexibility for growth.
This document provides a summary of Lear Corporation's third-quarter 2006 results, fourth-quarter 2006 guidance, and preliminary outlook for 2007. Key points include:
- Third-quarter net sales were $4.1 billion and core operating earnings were $46.2 million.
- Fourth-quarter 2006 guidance projects net sales of $4.1 billion and core operating earnings between $80-110 million.
- A preliminary outlook for 2007 anticipates annual industry production in line with 2006, global new business of $800 million, and free cash flow turning solidly positive.
allstate Quarterly Investor Information 2006 2nd Earnings Press Releasefinance7
Allstate reported an increase in net income and operating income for the second quarter of 2006 compared to the same period in 2005. Net income increased 5% and operating income increased nearly 14%, while net income per share grew 10.5% and operating income per share increased 20.5%. Allstate also increased its guidance for full-year 2006 operating income per share based on strong second quarter results and expectations for the remainder of the year.
The Progressive Corporation announced that it will host its 2006 Investor Relations Meeting on June 15th via webcast. Information distributed at the meeting will be made available on the company's website. Progressive also reported its May 2006 results, including a 3% increase in net premiums written and earned compared to May 2005. Net income remained flat at $125.8 million. The combined ratio was 86.7, up 0.9 points from the prior year.
southern 2000 Editorial Section, color typefinance17
Southern Company achieved record financial results in 2000, with earnings from operations of $1.40 billion, up 7.1% from 1999. A key event was the successful IPO and planned spinoff of Southern Energy, now called Mirant Corporation. Southern Company Chairman Allen Franklin reviews the year's accomplishments and outlines the company's strategic focus on its regulated utility business in the Southeast and growing its competitive generation business in the "Super Southeast" region, with a goal of doubling earnings from this segment within five years through capacity additions.
southern 2000 Editorial Section, black typefinance17
Southern Company achieved record financial results in 2000, with earnings from operations of $1.40 billion, up 7.1% from 1999. A key event was the successful IPO and planned spinoff of Southern Energy, now called Mirant Corporation. Southern Company Chairman Allen Franklin reviews the year's accomplishments and outlines the company's strategic focus on its regulated utility business in the Southeast region and growing its competitive generation and energy services businesses. Southern Company is well positioned for continued growth and shareholder value creation in the fast-growing Southeast U.S. energy market that it knows best.
This annual report discusses Xcel Energy's strong performance and opportunities for growth in 2000 following its merger. Key points include:
1) Xcel Energy met or exceeded its financial and operational targets for the merger in its first year. This included achieving $2.12 in earnings per share, exceeding its $1.77 target.
2) The report is optimistic about Xcel Energy's future, citing its large size and scope, growing customer base, and opportunities through its subsidiary NRG Energy.
3) Challenges in California and the need for a national energy policy are acknowledged, but the report expresses confidence in Xcel Energy's ability to thrive through innovative approaches and positioning its businesses for competition.
ONEOK is an energy company founded in 1906 that markets and trades natural gas and electricity. In 2001:
- Earnings declined due to falling natural gas prices, an economic recession, and ONEOK subsidiary Oklahoma Natural Gas being denied recovery of $34.6 million in gas costs.
- The collapse of Enron, a major energy trader, negatively impacted ONEOK and other companies by failing to pay for commodity transactions. ONEOK estimated its total exposure to Enron's bankruptcy was less than $40 million.
- ONEOK's accounting practices and culture differ significantly from Enron, which aggressively used mark-to-market accounting and off-balance sheet financing vehicles to inflate assets.
allstate Quarter Information 2008 3rd Earnings Press Releasefinance7
- Allstate reported a net loss for Q3 2008 due to catastrophe losses from Hurricanes Ike and Gustav totaling $1.8 billion and net realized capital losses of $1.3 billion from declines in credit markets.
- Catastrophe losses would have been $1.4 billion higher without risk mitigation programs that reduced coastal exposure.
- Net realized capital losses were partially offset by gains from macro-hedging programs.
- Underlying property-casualty business margins remained strong and the company maintained strong liquidity and capital positions.
C.H. Robinson achieved strong success in 2007 despite challenging market conditions. The company grew gross profits 14.9% to $1.2 billion through its diverse mix of transportation services and customer relationships. Its non-asset based model and over 7,300 employees enabled it to efficiently manage over 6.5 million shipments. Looking ahead, C.H. Robinson is well positioned for continued growth given industry trends, its financial strength with no debt and $455 million in cash, and opportunities to expand internationally and through acquisitions.
Omnicom Group Inc. reported financial results for the fourth quarter and full year of 2007. Net income increased 13.2% in the fourth quarter and 12.9% for the full year. Revenue increased 12.7% in the fourth quarter to $3.6 billion and 11.6% for the full year to $12.7 billion. Domestic revenue rose 9.5% in the fourth quarter and 8.2% for the full year, while international revenue increased 16.3% and 15.6% respectively.
The Progressive Corporation reported strong financial results for the first half of 2004, with net income of $846.3 million, up 46% from the same period in 2003. Net premiums earned grew 18% to $6.3 billion due to a 12% increase in net premiums written. The combined ratio was 84.3%, substantially better than industry averages. Progressive expects growth to slow as fewer customers actively shop for better rates in the stable market conditions. The company made progress on initiatives to improve claims handling and customer service.
The document is FedEx Corporation's 2000 Annual Report. It summarizes that in FY2000, FedEx saw a 9% increase in revenue to $18.3 billion and a 9% increase in net income to $688 million. Earnings per share grew 10% to $2.32. It also outlines FedEx's new strategic plan called "Project ARISE" to strengthen the FedEx brand and provide more integrated services and solutions for customers. The plan aims to drive revenue and profit growth through cross-selling services, expanding international business, leveraging e-commerce, and providing supply chain solutions.
This document summarizes Bank of America's second quarter 2009 results. It reported net income of $3.2 billion and diluted EPS of $0.33. Revenue was $33.1 billion. Provision for credit losses was $13.4 billion as the allowance was strengthened for continued economic deterioration. Large items impacting earnings included gains from the sale of China Construction Bank shares and a merchant processing business, but losses from derivative adjustments and capital markets disruption charges. The company continued operating in a challenging economic environment.
The document summarizes Office Depot's fourth quarter 2008 earnings conference call. It reported a GAAP loss of $1.54 billion or $5.64 per share due to impairment charges. Excluding charges, the loss was $199 million or $0.73 per share. Total sales declined 15% to $3.3 billion due to economic challenges. It is taking actions like store closures to improve profitability in 2009.
The document outlines the corporate governance guidelines of Office Depot, Inc. It discusses [1] the composition of the board, including the election of chair and lead director, size of the board, and selection of board candidates; [2] requirements for board membership including independence, retirement age, and term limits; and [3] processes for board meetings, including agenda setting, executive sessions, and interaction with management and advisors. The guidelines are intended to assist the board in exercising its responsibilities under relevant laws and regulations.
Southern Company reported third quarter 2004 earnings of $644.5 million, meeting expectations. Earnings for the first nine months of 2004 were $1.33 billion, compared to $1.27 billion in the same period in 2003 excluding a one-time gain. Mild weather and increased industrial sales offset some of the financial impact of Hurricane Ivan, which left 1.6 million customers without power but was restored within a week for 94% of customers. Southern Company served about 70,000 more customers as of September 30 than the previous year and expects continued long-term customer growth of 1.5% annually. Capital expenditures are projected to be $7 billion from 2004 to 2006 focused on regulated infrastructure including environmental and transmission/distribution
This document is PACCAR Inc's quarterly report (Form 10-Q) filed with the SEC for the quarter ended June 30, 2003. It includes:
1) Financial statements including income statements, balance sheets, and cash flow statements for the quarter and year-to-date.
2) Notes to the financial statements providing additional details on accounting policies, inventory valuation, and new accounting standards.
3) Certification by management of the accuracy of the financial statements and disclosure of any material changes to internal controls.
The report provides investors with PACCAR's consolidated financial position and operating results for the quarter in compliance with SEC regulations.
Computer Sciences Corporation (CSC) reported a 20% increase in earnings per share and a 21.7% increase in net income for the first quarter of fiscal year 2000 compared to the same quarter the previous year. Revenue increased 17.6% to $2.06 billion driven by increased demand for outsourcing, enterprise solutions, e-business, and systems integration. CSC also announced over $4.7 billion in new business awards during the quarter and expects e-business revenue to triple to nearly $600 million for the full fiscal year.
Southern Company is a premier energy company serving 4 million customers across 4 southeastern states. In 2002, it achieved earnings of $1.32 billion and increased its annual dividend to $1.37 per share. Southern Company continues to perform well through focused execution of its three-part strategy involving regulated utilities, competitive generation, and energy products/services. It aims to lead the industry in customer satisfaction while delivering sustainable growth and dividends to shareholders.
Citigroup reported record earnings from continuing operations for the first quarter of 2006, with net income of $5.64 billion, up 4% from the previous year. International earnings grew 47% due to record international revenues increasing 19%. Several business segments saw record results, including corporate and investment banking with revenues up 21% and international revenues in that segment up 34%. The company opened 238 new branches during the quarter as it continued expanding its distribution internationally.
This document is Gannett Co., Inc.'s 2005 annual report. It includes the company's financial summary for 2005, a letter to shareholders from the chairman and CEO, and information about the company's operations. The letter discusses leadership changes at Gannett in 2005, the company's financial performance for the year which saw increased revenues and operating cash flow despite challenges, and strategic acquisitions and investments made to expand Gannett's digital offerings and ability to reach audiences across multiple platforms.
Citi reported a $9.83 billion net loss for Q4 2007, driven by $18.1 billion in write-downs on subprime exposures and a $4.1 billion increase in credit costs for US consumer loans. For the full year, Citi earned $3.62 billion in net income on $81.7 billion in revenues. While most business segments saw strong revenue growth, losses were concentrated in fixed income markets and US consumer lending due to deteriorating credit quality. Citi outlined steps to strengthen its capital position and improve risk management in response to the poor results.
Caterpillar's 2003 annual report outlines steps to building a great company. It discusses (1) inventing revolutionary products like tracked machines that became Caterpillar tractors; (2) choosing distribution partners wisely, like the network of over 200 independent and family-owned dealers worldwide; and (3) continually innovating and anticipating customer needs through new technologies like ACERT engines and e-business solutions for dealers.
United Health Group UnitedHealth Group Financial Reviewfinance3
UnitedHealth Group reported strong financial results in 2003 with revenues increasing 15% to $28.8 billion and earnings from operations growing 34% to $2.9 billion. Net earnings grew 35% to $1.8 billion resulting in diluted EPS of $2.96. The results were driven by revenue growth across all business segments, improved margins on risk-based products, and a shift toward higher-margin fee-based services. Looking ahead, the company expects continued growth from increasing premium rates, expanding into new geographies and services, and pursuing additional acquisitions.
This document is the 2007 annual report for ConAgra Foods Inc. It summarizes the company's financial highlights for fiscal year 2007, including a 5% increase in net sales to $12.028 billion and growth in operating profit, income from continuing operations, and net income compared to the previous fiscal year. It discusses the company's strategic priorities or "Must Do's" of rewiring processes to be more efficient, attacking costs to fuel growth, optimizing its product portfolio, innovating new products, exceeding customer expectations, and nurturing employees. The report provides examples of progress made in each area in fiscal 2007, such as selling non-core businesses, implementing new manufacturing and logistics systems, focusing marketing investments on priority
This annual report summarizes Ameriprise Financial's performance in 2006. Some key points:
- Revenues grew 11% to $8.1 billion and earnings grew 25% to $866 million.
- Total client assets grew 9% to $466 billion and life insurance in force grew 9% to $174 billion.
- The company strengthened its brand awareness, which grew from near zero to 50% by the end of 2006.
- Ameriprise is well positioned to serve the growing number of baby boomers entering retirement over the next two decades as the first boomers turned 60 in 2006.
This annual report summarizes Ameriprise Financial's performance in 2006. Some key points:
- Revenues grew 11% to $8.1 billion and earnings grew 25% to $866 million.
- Total client assets grew 9% to $466 billion and life insurance in force grew 9% to $174 billion.
- The company continued to invest in its brand, advisor force, products, and technology to capitalize on serving the growing mass affluent and affluent market, especially retiring baby boomers who will need financial advice and solutions.
Citi reported record quarterly revenues of $25.5 billion, up 15%, and net income of $5.01 billion, down 10% from the prior year. Net income was reduced by an $871 million after-tax charge related to a structural expense review. Excluding this charge, net income was $5.88 billion, down 9% due to higher credit costs and a lower tax benefit. Revenues grew across most business segments, led by a 23% increase in Markets & Banking revenues. Credit costs increased $1.26 billion due to higher net losses and increases to loan loss reserves.
The document summarizes Best Buy's annual shareholder meeting held on June 27, 2007. It provides the agenda which included the election of directors, ratification of auditors, and a vote on amending the stock incentive plan. Presentations were given by executives on the company's financial performance, growth strategies, and outlook for fiscal year 2008. Shareholders voted to approve all agenda items, with support over 94% for each. The company projected fiscal 2008 revenue of $39 billion and earnings per share of $2.95 to $3.15.
State Street provides a summary of its business in 2003. It is the world's leading provider of investment services to institutional investors, with $9.4 trillion in assets under custody and $1.1 trillion under management. In 2003, State Street integrated the largest acquisition in its history of Deutsche Bank's investment servicing business. It focuses on continuing to provide excellent service while growing earnings per share and maintaining its tradition of integrity and innovation.
State Street had a challenging year in 2003, integrating the largest acquisition in its history while continuing to provide excellent client service. While net income declined from the previous year, operating earnings per share grew 8% and operating revenue increased 15% due to the acquisition of Deutsche Bank's Global Securities Services business. Assets under custody and management both significantly increased. The company reduced costs through job cuts and remains focused on serving institutional investors.
Winn-Dixie Stores, Inc. reported declining financial results for fiscal year 2004, with sales and gross profit decreasing from the previous year. The company developed a strategic plan to strengthen its competitive position, focusing on rationalizing its store base, achieving $100 million in annual expense reductions, and improving its brand and customer experience. Key initiatives included closing underperforming stores, exiting non-core markets, reducing expenses, enhancing product offerings, and improving stores' appearance and customer service. The company aims to implement these changes to enhance its business and financial performance over the long run, though acknowledges that a turnaround will not happen overnight.
Winn-Dixie's sales and profits declined in fiscal year 2004 compared to 2003 due to challenging market conditions. To address these challenges, Winn-Dixie developed a strategic plan focused on rationalizing stores and facilities, achieving $100 million in annual expense reductions, and improving branding through better customer service, store appearances, and product offerings. Winn-Dixie aims to strengthen its position in its core markets in the Southeast U.S. and improve its competitiveness.
Citi reported a $5.1 billion net loss for Q1 2008, driven by write-downs in fixed income due to sub-prime exposures and losses in highly leveraged finance. Revenues fell 48% to $13.2 billion due to these losses, though transaction services grew 42% and wealth management grew 16%. Credit costs increased $3 billion as consumer delinquencies rose in the weakening US economy. Management is taking actions to strengthen the balance sheet through capital raises and divestitures of non-core assets.
Leggett & Platt's 2006 annual report outlines its goals for the future. It aims to achieve annual sales growth of 8-10% through 3-5% internal growth and 5% from acquisitions. It also targets an 11% EBIT margin by 2009, up from around 8.5%, by introducing new products, increasing sales, entering new markets, and improving efficiency. To reach these goals, Leggett & Platt will reinvigorate product development, establish a council of senior researchers, and develop new market opportunities through ideas generation and acquisitions to devote more cash flow to growth.
Leggett & Platt's 2006 annual report outlines its goals for the future. It aims to achieve annual sales growth of 8-10% through 3-5% internal growth and 5% from acquisitions. It also targets an 11% EBIT margin by 2009, up from around 8.5%, by introducing new products, increasing sales, entering new markets, and improving efficiency. To reach these goals, Leggett & Platt will reinvigorate product development, establish a council of senior researchers, and develop new market opportunities through innovation and entering new industries.
This annual report summary provides an overview of Leggett & Platt's financial performance in 2006:
1) Leggett & Platt achieved record sales and earnings in 2006. Sales increased 4% to $5.5 billion while earnings per share grew 23.8% to $1.61. Acquisitions contributed 5% to sales growth.
2) The company transitioned to a new CEO and COO in 2006 and completed a restructuring program aimed at improving margins. New growth and margin targets were established, including 8-10% annual sales growth and an 11% EBIT margin by 2009.
3) The company continues to generate strong cash flow and maintain a healthy balance sheet.
This document is a letter from the leadership of General Motors to its stockholders. It summarizes GM's financial performance in 2003, noting record revenue but unmet profit expectations. It identifies challenges like healthcare costs and foreign competition. However, it emphasizes GM's progress in areas like new vehicle development, global coordination, and brand differentiation. It outlines an optimistic outlook based on GM's strengths, and promises an onslaught of exciting new products to strengthen its position.
The document summarizes Bank of America's operating review and financial results for 2007 and Q1 2008. It discusses factors that contributed to challenges like market dislocations and a weakening economy. While most business lines saw lower profits, consumer and wealth management saw some growth. The CFO notes strategies to refocus businesses and adjust underwriting standards. Asset quality deteriorated with higher provisions and charge-offs. However, the company maintains a strong capital position and liquidity.
This document outlines Computer Sciences Corporation's equity grant policy, including the types of equity grants awarded, grant dates, approval process, and reporting requirements. It states that CSC issues equity grants to directors and employees to attract, retain, and motivate them. Equity grants include stock options, restricted stock, and restricted stock units. Grant dates depend on whether the recipient is a director, new hire, promotion, or current employee. Senior executive grants require higher levels of approval than non-senior grants. The company must stay within an approved annual equity grant budget.
The document outlines the bylaws of Computer Sciences Corporation. It details the principal office location, procedures for annual and special stockholder meetings, requirements for submitting items and nominations for consideration at meetings, and election of directors. Key details include timelines for submitting proposals/nominations, information required to be provided, and requirements for stockholders to present submitted items at meetings.
This document restates the articles of incorporation of Computer Sciences Corporation. It outlines the corporation's name, principal office location, nature of business, capital stock structure including 750 million shares of common stock and 1 million shares of preferred stock. It provides the board of directors authority to establish terms for preferred stock series and outlines shareholder rights and restrictions.
This document outlines a supplemental code of ethics specifically for a company's Chairman and Chief Executive Officer, Vice President and Chief Financial Officer, and Vice President and Chief Accounting Officer. The code builds upon the company's existing code of ethics and standards of conduct applicable to all directors, officers, and employees. It requires these executives to act with honesty and integrity, avoid conflicts of interest, ensure full financial disclosure, comply with all applicable laws and regulations, and promptly report any unethical or illegal conduct. Violations will be reported to the board of directors who will determine appropriate accountability actions.
This document outlines the Code of Ethics and Standards of Conduct for Computer Sciences Corporation (CSC). It discusses CSC's commitment to ethics, integrity and social responsibility. It also summarizes the principles of avoiding conflicts of interest, protecting company and customer property, providing accurate records and reports, maintaining a professional work environment, and procedures for reporting violations. Adherence to the Code is required by all CSC directors, employees and representatives.
This document outlines the corporate governance guidelines for Computer Sciences Corporation. It addresses the role of the board of directors in overseeing management and acting in good faith. It also covers the composition of the board, including the size, selection process, and independence of directors. The document provides qualifications for directors, including limits on other board service and procedures for changes in job responsibilities. It describes board committees, conduct of meetings, access to management and advisors, performance evaluations, director compensation, orientation, education, and succession planning.
This document provides an investor highlights report for Computer Sciences Corporation (CSC) for the first quarter of fiscal year 1997. It summarizes that CSC reported a 20% increase in net income and 20.5% increase in revenue compared to the same quarter the previous year. It also announces three acquisitions that further expanded CSC's industry-specific consulting services. CSC operates in strong markets for information technology services and sees continued growth opportunities.
CSC reported $1.36 billion in revenue for the second quarter of FY1997, a 20.1% increase over the previous year. CSC earned $49.3 million excluding a one-time $48.9 million charge related to an acquisition. For the first six months of FY1997, CSC reported $2.66 billion in revenue and $94.6 million in net income excluding the charge. CSC operates in commercial and government IT markets, with growing demand for outsourcing and consulting services.
Computer Sciences Corporation reported a 15.5% increase in earnings per share for the first quarter of fiscal year 1998. Revenue rose 14.2% to $1.488 billion, with growth in commercial, European, and other international sectors. While US federal revenue declined slightly due to contract completions, the company expects this sector to improve over the fiscal year as new contracts are implemented. Overall, CSC's business continues to demonstrate strong growth trends across its consulting, systems integration, and outsourcing services.
Computer Sciences Corporation reported financial results for the second quarter of fiscal year 1998, ended September 26, 1997. Revenue increased 16.5% to $1.58 billion compared to the previous year. Net income grew 18.8% to $58.6 million. The company provides management consulting, systems integration, and outsourcing services worldwide to industry and government clients. New contracts were announced during the quarter, and the company expects continued revenue growth for the remainder of the fiscal year.
The document is a quarterly report from Computer Sciences Corporation (CSC) providing key financial information and highlights for investors. It summarizes that CSC's revenue increased 17.1% in the third quarter of fiscal year 1998 compared to the previous year. Net income also rose 20.5% over the same period. The report further outlines CSC's business segments and global operations, as well as new contracts and growth in key market sectors during the quarter.
Computer Sciences Corporation (CSC) reported higher revenue and earnings for the first quarter of fiscal year 1999 compared to the same period the previous year. Revenue increased 17.8% to $1.75 billion while net income rose 22.2% to $64.3 million. The company also announced $2.8 billion in new contract awards during the quarter and saw growth across all of its major service categories. CSC's chairman attributed the strong results to continued expansion in key markets like financial services and healthcare as well as new strategic partnerships.
Computer Sciences Corporation (CSC) reported a 21.6% increase in earnings per share for the second quarter of fiscal year 1999 compared to the previous year. Revenue increased 17% to $1.85 billion driven by strong growth in Europe and the federal sector. For the first half of the fiscal year, net income rose 23.6% and revenues increased 17.4% over the previous year. CSC also acquired a majority stake in a French consulting firm, increasing its presence in that country.
Computer Sciences Corporation reported a 22.7% increase in earnings per share for the third quarter of fiscal year 1999 compared to the previous year. Net income increased 25.9% while revenues rose 15.9%. Growth was driven by strong performance in European operations, consulting, financial services, and lower interest costs. For the first nine months of the fiscal year, net income increased 24.5% while revenues were up 16.9% year-over-year.
Computer Sciences Corporation (CSC) reported higher earnings and revenue for the second quarter of fiscal year 2000 compared to the same period last year. Earnings per share rose 22.2% and net income increased 22.7% due to strong global commercial growth and improved operating performance. CSC continues to see significant demand for outsourcing and other services and rapid growth in requests for e-business solutions.
Computer Sciences Corporation (CSC) reported financial results for the third quarter of fiscal year 2000, ending December 31, 1999. Revenue was up 14.9% to $2.4 billion compared to the previous year. Earnings per share, excluding special items, were 66 cents, a 20% increase over the previous year. CSC received $3.5 billion in new business awards during the quarter and $9.6 billion year-to-date. Research analysts from various firms cover CSC stock, which trades on the New York Stock Exchange.
Computer Sciences Corporation (CSC) reported financial results for the first quarter of fiscal year 2001, ended June 30, 2000. Revenues increased 11.8% to $2.46 billion due to strong growth in the U.S. federal government, Asia-Pacific, and commercial outsourcing sectors. Net income grew 13.5% to $96 million and earnings per share increased to 56 cents. CSC also secured $3.3 billion in new business awards during the quarter and remains on track to achieve its target of $1 billion in e-business revenue for the fiscal year.
Computer Sciences Corporation (CSC) reported strong financial results for the second quarter of fiscal year 2001, with revenues increasing 12% to $2.5 billion and net income growing 17.1% to $109 million. For the first six months of the fiscal year, revenues were up 11.9% to $5 billion and net income increased 15.4% to $205 million. The company secured $7.7 billion in new contracts for the first half, fueling anticipated growth in the second half of the year.
Computer Sciences Corporation (CSC) reported financial results for the third quarter of fiscal year 2001, ended December 29, 2000. Revenues increased 12.9% to $2.7 billion due to growth in the federal government vertical market and commercial outsourcing. Earnings before special items increased 9.6% to $122.9 million. Major new business awards totaled $1.8 billion for the quarter. For the nine-month period, revenues increased 12.2% to $7.6 billion and earnings before special items increased 13.1% to $327.9 million, though results were impacted by currency effects and restructuring costs. CSC also discussed several new contracts and engagements.
Computer Sciences Corporation (CSC) reported financial results for the first quarter of fiscal year 2002, ended June 29, 2001. Revenue grew 10.2% to $2.7 billion due to strong growth in global outsourcing. Net income was $47.7 million. Commercial revenue grew 17% internationally due to outsourcing contracts in the UK and Scandinavia. Federal government revenue rose 3.9% despite some contract completions, with growth in civil agencies and GSA work. CSC will focus on larger outsourcing engagements and adjusting to reduced consulting demand, while progressing on improving recent outsourcing contracts.
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2. SOUTHERN COMPANY is one of the world’s leading energy suppliers and the largest producer of electricity
in America. Our goal is to grow 8 percent annually. We’re producing and acquiring more energy and selling it
to large wholesale customers in targeted regions throughout North America and around the world. Our strategy
includes building and buying more generating plants and gaining access to more natural gas. We’re aiming to
be the best investment in our industry, and we plan to achieve that through aggressive growth.
FINANCIAL HIGHLIGHTS
1999 1998 change
Operating revenues (in millions) $11,585 $11,403 1.6)%
Earnings as reported (in millions) $1,276 $977 30.6)%
* Earnings from operations (in millions) $1,303 $1,225 6.4)%
Basic and diluted earnings per share as reported $1.86 $1.40 32.9)%
* Basic and diluted earnings per share from operations $1.90 $1.76 8.0)%
Dividends per share $1.34 $1.34 –)
Dividend yield (percent) 5.7 4.6 23.9)%
Average shares outstanding (in millions) 685 697 (1.7)%
Return on average common equity (percent) 13.43 10.04 33.8)%
Book value per share $13.82 $14.04 (1.6)%
23 1/2 29 1/16
Market price (year-end, closing) (19.1)%
Total market value of common stock (year-end, in millions) $15,646 $20,278 (22.8)%
Total assets (in millions) $38,396 $36,191 6.1)%
* Southern Energy’s earnings from operations (in millions) $355 $239 48.5)%
* Earnings from operations exclude items not related to day-to-day business activities.
CONTENTS
4 Big Picture …Tiny Details 18 Soaring Higher
Low costs, high reliability, the best We’re serious about improving the
customer service and cleaner electricity. world around us.
6 On Top of the Box 20 Extraordinary Joes
Our innovation started in the Southeast These Joes are special.
and often makes us the first, the fastest
22 Have a Cup of Joe … with Bill
and the best.
Bill Dahlberg talks a little more about our
10 Expanding Our World accomplishments, strategy and future.
Our growth and success in targeted regions
24 Financial Review
throughout North America and around the
66 Directors and Officers
world are beating expectations.
16 Opportunities Abound 68 Shareholder Information
We work to get the highest value from
every part of our business.
3. It’s Bill Dahlberg, our chairman and
chief executive officer. His vision and
ability to lead us down the right road
has helped us achieve all-time record
earnings and growth.
We’re Southern Company…
not your ordinary average Joe electric utility.
4. Areas in which we provide...
Electricity
Gas
Electricity & Gas
Competitive Energy Business
Regions North America
Markets California/Southwest, Midwest, Northeast,
Southeast, Texas
Products/Services • Electricity generation
• Natural gas storage and management
• Wholesale energy trading and marketing
Subsidiaries, • Southern Company Generation
Affiliates & • Southern Energy
We’re one of the largest energy businesses Business Units • Southern Company Energy Marketing
• Southern Wholesale Energy
in the world and America’s largest producer
of electricity. With generating facilities in key
markets, significant natural gas operations
Major Customers • Brazos Electric Power Cooperative
and one of North America’s largest energy
• California ISO
trading and marketing operations, we can • California Power Exchange
• Commonwealth Edison
supply energy almost anywhere in the United • Florida Power & Light
• Florida Power Corporation
States. Internationally, we focus on targeted • New England ISO
• New York ISO
markets with high growth. • Virginia Electric & Power
• Other electric and gas utilities, municipal utilities,
cooperatives, large industrial users, oil and gas
producers, electricity generators and other marketers
Main Competition • Other power producers, energy marketers and utilities
5. Sweden
Norway Finland
England
Canada Denmark
Germany
Netherlands
United States
China
Bahamas
Trinidad Philippines
& Tobago
Brazil
Countries in which we provide energy
Regulated Business Other Business
International Southeast Southeast
Asia, Europe, South America, Caribbean Alabama, Florida, Georgia, Mississippi Alabama, Florida, Georgia, Mississippi
• Electricity generation • Electricity sales and distribution to retail customers • Energy services
• Electricity sales and distribution to retail customers • Security monitoring
• Wholesale energy trading and marketing • Wireless telecommunications
• Southern Energy • Alabama Power • Southern Company Energy Solutions
• Bewag AG • Georgia Power • Southern LINC
• Companhia Energetica de Minas Gerais (CEMIG) • Gulf Power
• Consolidated Electric Power Asia (CEPA) • Mississippi Power
• Freeport Power • Savannah Electric
• PowerGen • Southern Nuclear
• Southern Energy – Europe
• Western Power Distribution
• About 2.1 million customers in Berlin • About 3.9 million consumers and businesses in • More than 50 other utilities and their customers
• Homes and businesses in southern Brazil the southeastern United States, ranging from large, • Mall of Georgia
• Guangdong Provincial Power Bureau in China industrial customers like Chevron in Mississippi to • Lenox Square
• National Power Corporation and industrial companies heavy residential and commercial users like the • Residences and businesses around the Southeast
in the Philippines Atlanta metropolitan area • Nearly 200,000 users of wireless telecommunications
• About 15,000 homes and businesses in Grand Bahama services in the southeastern United States
• Trinidad and Tobago Electricity Commission
• Other utilities and wholesale customers in
the European Union nations
• About 1.3 million consumers and businesses in
southwestern England
• Other independent power producers from Europe • Other power producers and distributors • Utilities and other energy services companies
and the United States • Other security companies
• Regional utilities • Specialized mobile radio providers,
personal communications system and
cellular carriers, and paging companies
6. OUR BUSINESS IS ENERGY.
We supply it. To millions of people. To large energy users in regions with significant
growth. In the Southeast. In California. In New England. And in other targeted areas
throughout the United States. In China and the Philippines. In Germany and other
European Union countries. And in South America and the Caribbean.
We’re big. Nearly 50,000 megawatts big. That’s among the biggest. We generate
more electricity than anyone else in the United States.
We know what we’re doing. That’s clear in our growth. And in our success as
one of the world’s largest suppliers of energy. We are among the best in reliability,
customer satisfaction and costs. And in making electricity cleaner.
We’re successful. Our strategy is working. Our growth is exceeding our goals.
We’re doing what we said we would do.
Don’t get me wrong. I’m not making excuses. And I’m not
ACHIEVING RECORD EARNINGS
In 1999, we achieved record earnings of $1.3 billion. happy about our return in 1999. But it does help to keep it
Earnings per share as reported were $1.86. in perspective.
Earnings per share from operations were $1.90. It’s an
8 percent increase over 1998. It also beats our 1999 goal AIMING TO BE THE BEST
of $1.85 per share. Our overall goal has not changed. We intend to be the best
We had a great year financially. The best ever. investment in our industry. Everything we do is aimed at
But the stock market did not reward our performance. that goal.
You and I – as owners of our company – lost share value. We will continue to do the things that we feel make us a
That’s amazing. How could that happen? great investment. Like leading the innovation in our industry.
I believe it’s due in great part to the ongoing dot.com And achieving greater than ever success. Change in our indus-
investing frenzy. The stock market’s interest in Internet try is a challenge for many utilities. And for investors and
and technology companies has lessened investor interest in analysts. For us, it has been an opportunity.
backbone industries like ours. We used to be a southeastern regulated utility business.
I believe it’s also due to the ongoing change in our indus- We are now an international competitive energy giant with
try. Investors are sitting on the sidelines, waiting to see how some southeastern regulated utility operations. And we’re
it will all shake out. They no longer have a single, predictable growing bigger.
formula by which to judge performance. More than a third of our profits come from our competitive
Importantly, our return was better than our industry aver- business. In three years, we project that it will grow to 50 per-
age. And over the past 10 years, our average annual return cent. Beyond that, the percentage should continue to grow.
was 11.4 percent. That compares with an industry average Our goal is to grow earnings another 8 percent this year.
of 8.9 percent. Our earnings per share target for 2000 is $2.05. I believe this
2
7. OUR COMPETITIVE ENERGY
BUSINESS CONTINUES TO GROW
50%
2003*
35%
1999
1995 10%
EARNINGS FROM COMPETITIVE BUSINESS
(Includes our wholesale business in the Southeast)
* Projected
growth is achievable based on the investments and plans we NOT YOUR ORDINARY AVERAGE JOE
already have in place. In the near term, there likely will still be some uncertainty
Our strategy for growth is simple. We’re working to be a about how to judge success in our changing industry. And the
major supplier of environmentally friendly energy in the high- Internet and technology companies will probably continue to
growth, large-use markets that we’ve targeted. They include dominate the attention of investors. In a way, that’s okay. I
the Southeast, Northeast, California/Southwest, Midwest and like to think of the exploding information age and technology
Texas in North America, China and the Philippines in Asia, boom in terms of what powers it. We do.
and the European Union countries. But in the long-term, I believe growth in earnings will be
We’re adding more generation and making electricity what really matters. That’s why we’re not your ordinary aver-
cleaner. We’re also taking our expertise in producing power age Joe electric utility. And why I believe Southern Company
from coal and applying it to natural gas. We’ve been running is and will continue to be one heck of an investment.
plants for more than 70 years. No one does it better. Thank you for being shareholders.
UNLOCKING THE VALUE
Our growth as a competitive business has created what I believe
is significant value. But that value has not been reflected in
our share price.
One of my priorities is to get that value to our shareholders.
That means we’ll be looking at our company even more differ- A.W. Dahlberg
ently than we have in the past. And we’ll be considering vari- March 17, 2000
ous options.
I want to unlock the value we’ve created.
3
8. Big Picture
“It’s important to appreciate that everything contributes
to the big picture. We pay attention to details.”
MAKING EXCELLENCE A STANDARD
Our regulated business makes excellence a standard. Its growth in energy sales – projected to be
2.2 percent annually for the next 10 years –is among the best of any regulated electric business in
the United States.
We never take our eyes off the foundation of our business. Low costs, high reliability, the best
customer service and cleaner electricity–that’s what it is all about.
Our emphasis on cost control has helped keep our prices at or below what others would charge
if they could sell energy to homes and businesses in our service area.
In customer service, our five regulated electric utilities are the best. They hold the top five spots
in a national survey rating satisfaction among large energy users.
We continue to reduce the rate of emissions at our generating plants. For example, we’re plan-
ning to spend more than $700 million over the next three years to help make the air cleaner in
metropolitan Atlanta because we want every megawatt-hour we produce to be cleaner –on average
– than it was the year before.
4
9. Tiny Details
THIS IS NOT JOE
For Allen Franklin , our president and chief operating
officer, enjoying the outdoors is second nature.
5
11. THIS IS NOT JOE
Collecting and restoring jukeboxes,
Charles McCrary – president of
Southern Company Generation and
our chief production officer – does
a lot of thinking on top of the box.
“Working smart and taking advantage of every opportunity
allows us to generate some beautiful music.”
PRODUCING AND SUPPLYING ENERGY
Our fundamental business is producing and supplying energy. And our
wholesale business in the Southeast continues to be the model for our transition
to a competitive energy supply business. The key is making the best use of our
assets– producing electricity at the lowest possible cost and then selling it to get
the best value for our shareholders.
GROWING AGGRESSIVELY IN THE SOUTHEAST
We have a large and aggressively growing competitive energy supply business in
the Southeast. It helps us get the most value out of the more than 31,000 mega-
watts of generating capacity we own in the region. Our competitive energy supply
business in the Southeast is aiming to grow its net income 10 percent annually.
7
12. We’re growing aggressively and making our electricity
cleaner. Doing that creates value for our shareholders
and our customers.
GROWING COMPETITIVELY
In the Southeast, our competitive energy supply business drives our growth.
The portion of our generating capacity in the Southeast dedicated to our THIS IS NOT JOE
competitive energy supply business will grow from its current 13 percent to
about 28 percent by 2003. And that’s while we add nearly 7,000 megawatts
of new environmentally friendly gas-fired generation.
The 10,000 megawatts we will use to serve wholesale customers in the
Southeast will make our competitive energy supply business larger than many
investor-owned utilities.
PROFITING FROM OPPORTUNITY
Southern Wholesale Energy – or SWE – acts as an agent for our regulated business.
Demand for electricity from our retail and wholesale customers fluctuates
throughout the year. As a result, there’s an opportunity for us to sell and buy elec-
tricity according to market prices and demand for electricity. SWE does that, buy-
ing when market prices are below our cost to produce, and selling when we can
make a profit. NEITHER IS THIS...
MANAGING RISK
SWE has long-term contracts to supply more than 4,000 megawatts of electricity
to about 30 large customers. We continue to expand this business. In 1999, we
added more than 800 megawatts of new long-term contracts.
Long-term deals help minimize risk. When we add new generation dedicated
to serve competitive energy markets, our target is to have wholesale customers
already committed to about 80 percent of the output. We then sell the remainder
on a short-term basis.
GETTING THE BEST VALUE
We plan to continue being the leading energy supplier in the Southeast.
That means we’ll continue developing generation to meet the region’s future
OR THIS...
energy demands.
SWE’s success at getting the best value from generation is the model on
which we base our competitive energy supply business in North America and
throughout the world.
With SWE, we buy and sell electricity and fuel through our energy marketing and
trading organization in Birmingham, Alabama. From the top: Ken Damsgard, fuel buyer;
Angela Dunn, fuel analyst; Steve Lowe, trader; Jackie Abercrombie, risk control analyst.
8
OR THIS...
13. Competitive
Energy
THIS IS NOT JOE
It’s Kim Flowers, manager of Plant
Smith in northwest Florida. She’s
leading our efforts to increase the
facility’s efficiency while also
decreasing its rate of emissions.
9
14. “Discovering a world of opportunities and growth
is sometimes a matter of looking in the right places.”
Expanding
MAKING A GOOD THING BETTER
Southern Energy’s faster than expected growth and greater than expected success helped
Southern Company achieve record earnings. We’re working to continue that.
Our competitive energy business outside the Southeast is growing fast. Southern Energy’s
1999 earnings from operations were $355 million, compared with $239 million in 1998.
We have a large, balanced competitive
energy supply business. From that base, we’ve
targeted regions with high, increasing energy
use throughout North America and around
the world. More than half the revenue in our
competitive energy supply business comes
from long-term contracts. No single project
contributes more than 17 percent of our cash.
We’re well positioned to continue taking
advantage of increasing growth opportunities.
10
15. THIS IS NOT JOE
Marce Fuller–chief executive
of Southern Energy and scuba
diving enthusiast –is helping
expand our world.
Our World
11
16. THIS IS NOT JOE
It’s Gary Morsches, who leads our energy trading and marketing
efforts. With nearly 500 stations, our new facility is one of the world’s
largest state-of-the-art energy trading floors.
North Am
We believe we are the first and best truly national competitive energy business. We can buy and sell
energy anywhere in North America. In addition to our more than 31,000 megawatts of generation in the
Southeast, we have 12,000 megawatts – that we own, are building, or have control over – in the Northeast,
California/Southwest, Midwest, and Texas regions. We’re also a virtual natural gas company with
access to and control over 25 billion cubic feet of storage, 545 million cubic feet of transportation, and
1.6 billion cubic feet per day of production.
Northeast, California/Southwest, Midwest, and Texas regions.
INCREASING PROFITS
We are big and growing. In 1999, we traded more than And that’s why we’re working to double that through acquisi-
219 million megawatt-hours of electricity, giving us an 8.3 per- tions and building new generation.
cent share of the U.S. wholesale electricity market. We also
traded 5.4 billion cubic feet of natural gas per day. MEETING U.S. ENERGY NEEDS
Through Southern Company Energy Marketing, we buy While they don’t receive any bills directly from us, chances
and sell electricity, natural gas, coal and oil from and to utili- are that – when the 250,000 students at the 50 colleges and
ties, independent power producers, marketers and others. universities in the Boston area power up their computers and
Having our energy trading and marketing group sell power research projects ... and when the financial markets take off for
from our generating plants significantly increases profits and another ride on Wall Street ... and when a cable car makes a
reduces risk. That’s because we use our knowledge of competi- trip into downtown San Francisco ... and when the fast-paced
tive markets to run our plants in response to daily – and even futures traded at the Chicago Mercantile Exchange are offi-
hourly – price changes. And that leads to bigger profit margins. cially recorded ... and when air conditioners run full blast to
That’s why we have 12,000 megawatts of generating capac- ease the Dallas heat – some of the electricity they use comes
ity – that we own, are building, or have control over – in the from us.
12
17. NO JOES HERE... OR HERE
Randy Harrison – who leads our California opera-
tions – and environmental manager Ron Kino have
their hearts in helping light up San Francisco. Our
3,065 megawatts in the Bay area are “must-run”
plants needed to meet the city’s energy needs.
Norm Cowden, our project manager in Massachusetts,
erica
is helping Boston’s “Clean Charles 2005 Initiative.”
Expanding our Kendall plant in Cambridge reduces
emissions. It includes cooling water discharge equip-
ment that will re-oxygenate and revitalize the bottom
of the Charles River, helping the community’s efforts
to make the river swimmable and fishable by 2005.
electricity to the Windy City. Near Green Bay, our plant
NORTHEAST
In the Northeast, our generating capacity of about under construction will pack in 306 megawatts of state-of-
3,000 megawatts goes into the systems that serve energy users the-art, gas-fired generation and should add another
in New York and Massachusetts. To help meet the growing 219 megawatts in 2008.
needs of those areas, we’re planning to add 1,500 megawatts
of new environmentally friendly, gas-fired generation. TEXAS
We have a major presence in Texas, where market growth is
strong and capacity is short. We’re building a 460-megawatt,
CALIFORNIA
Our plants in California are not far from Silicon Valley and gas-fired plant that will expand to 780 megawatts by 2005.
are anything but laid back. They are environmentally friendly, We also manage 1,650 megawatts for the Brazos Electric
gas-fired “must-run” units, meaning their 3,065 megawatts Power Cooperative in the Dallas-Fort Worth area.
are needed to meet the basic energy needs of the San Francisco
area. So are the 1,050 megawatts that we’re adding by 2003. CONTINUING SUCCESS
Our strategy is to continue pursuing new generation and link
it to our trading and marketing operations. To take better
MIDWEST
In the Midwest, we’re breezing into Chicago and aiming to advantage of increasing growth opportunities, we may need
be a big cheese in Wisconsin. We’re planning to more than more than our initial goal of 24,000 megawatts. But we don’t
double the size of our Indiana plant that currently provides buy everything that becomes available. It has to be the right
490 megawatts to Commonwealth Edison, which supplies opportunity in the right place at the right price.
13
18. Around the World
With our aggressive growth, we’re building our competitive energy business in key areas around
the world. Internationally, we have focused regional strategies that significantly add to our growth
and open up additional opportunities. We only go where we can be a major player and where we
feel the level of risk is manageable.
to 14,000 megawatts of generation to link to our trading and
EXCEEDING ALL EXPECTATIONS
Our growth in Asia is exceeding all our expectations. marketing operation.
Consolidated Electric Power Asia (CEPA) – our subsidiary Our investment in Bewag can be a base for gaining access
headquartered in Hong Kong – had earnings of $175 million to that additional generation. We own 26 percent of that
in 1999. That compares with $68 million in 1998. utility, which serves the metropolitan area of Berlin.
We finished building and are now running Sual, a 1,218- In England, we have Western Power Distribution, formerly
megawatt plant that provides the cleanest and lowest cost fos- known as SWEB. This operation provides a stable earnings
sil-fuel electricity in the Philippines. Electricity generated goes base and has set the standard for performance in that country.
to the National Power Corporation of the Philippines through Our European operations had reported earnings of
a 25-year agreement we reached before undertaking the project. $170 million in 1999. Depending upon how quickly the
Sual and our other generating facilities in the Philippines markets open to competition, there is potential for significant
and China make us the largest non-governmental independent growth opportunities.
power producer in Asia. We will continue to look for oppor-
tunities to expand our growth there. EVALUATING POTENTIAL
In South America, Brazil offers some high-growth opportuni-
ties, but also some structural and economic challenges. With
GROWING IN EUROPE
In Europe, we have an energy trading and marketing opera- our small investment in CEMIG, we’re taking a wait-and-see
tion that we opened in Amsterdam in 1999. Our target mar- approach that allows us to change our investment depending
ket area is the north-south corridor of European Union upon the potential we see.
nations from Scandinavia to Italy. In the Caribbean, we’ll continue to operate Freeport Power
If the competitive wholesale electricity market evolves as it in the Bahamas and PowerGen in Trinidad and Tobago. Though
has in the United States, we will seek to acquire or build up small, these operations are highly successful.
14
19. THIS IS NOT JOE
With our new Sual generating plant – and led by our country executive Ed Bautista – we’re providing
the lowest cost and cleanest energy available in the Philippines. With the new high school we built,
we’re also helping to provide an education for nearly 500 students on Pagbilao Island.
20. Opportunities
THIS IS NOT JOE
It’s Thorolese Hunt, who helps develop
product and pricing strategies for mar-
keting Southern LINC…and she has
the Internet in her hand. And e-mail.
And contact lists. And instant messag-
ing and conferencing. Southern LINC is
our state-of-the-art wireless communi-
cations service.
16
21. LEADING RESEARCH
New, cleaner and more efficient ways to produce and use energy – that’s the
focus of our research and drive to be a technological leader. We’re helping
develop the energy sources of the future.
Microturbines are relatively small electric generating units that can be run
from remote locations, including customer sites. Our test program is aimed at
finding where and how these units might be economical.
We’re participating in a three-year, $7 million joint project at the Houston
Advanced Research Center’s new Center for Fuel Cell Research and Applications.
In addition, we’re working with three other companies to build and install a
250-kilowatt demonstration fuel cell power plant at the Mercedes-Benz
production facility in Tuscaloosa, Alabama. Our objective is to find how fuel
cells can be a clean, reliable and affordable energy source.
Abound
We work to get the best value from every part of our business. We do that by being a techno-
logical leader in research. And by offering a variety of energy solutions and other services.
MAXIMIZING VALUE
Marketing a variety of energy and related services helps maximize the value
of our business. We offer customers ways to improve their energy usage and
to take advantage of other services we already have in place.
For example, we improve power quality to large customers by marketing
flywheels. The flywheels store energy that provides backup protection during
short outages.
Partnering with the U.S. Department of Energy in its national Energy
Smart School program, we’re helping schools use energy more efficiently by
modernizing their lighting and upgrading heating and cooling systems. The
savings achieved will be reinvested in the schools.
Southern LINC is another example of maximizing value. We set up this
wireless communications service for use by our regulated business in the
Southeast as well as by commercial businesses and government agencies. Now,
fast-growing Southern LINC has nearly 200,000 customers.
17
22. REDUCING EMISSIONS
Every day, more than 400 Southern Company employees work on protecting
and improving the quality of the air, land and water around us. And they’ve
been doing a good job.
Since 1990, we have reduced total nitrogen oxide (NOx) emissions by more
than 20 percent and per-megawatt-hour NOx emissions by nearly 40 percent.
During the same time, we’ve reduced total sulfur dioxide (SO2) emissions by
almost 30 percent and per-megawatt-hour SO2 emissions by nearly 40 percent.
And that’s while increasing our electricity production by 20 percent.
Although carbon dioxide (CO2) emissions are not regulated, we were one of
the first companies to join the U.S. Department of Energy’s Climate Challenge
Program. Over the past nine years, we have voluntarily reduced, avoided or off-
set nearly 33 million metric tons of CO2.
Improving the world around us is a commitment we take seriously.
We passionately believe in protecting and improving the environ-
ment. Over the past 10 years, we have invested more than $4 billion
doing that, and our efforts will continue.
MAKING ENERGY CLEANER
Our efforts to reduce emissions will continue. Our projections for 2010 include
further reducing NOx by more than 40 percent and SO2 by more than 25 per-
cent. We want every megawatt-hour we produce to be cleaner – on average –
than it was the year before.
As we grow, our new generation will be increasingly environmentally friendly.
For example, in the Southeast, 78 percent of our electricity is currently gener-
ated from coal. We project that will decrease to about 60 percent by 2010 and
to about 45 percent by 2020. As a result, we expect to decrease per-megawatt-
hour CO2 emissions by about 12 percent by 2010.
IMPROVING THE ENVIRONMENT
We also have many other activities aimed at improving the environment. Our
Environmental Teachers Corps annually helps more than 40,000 students learn
about conservation and recycling. Employees voluntarily participate in various
programs that help monitor rivers, protect wildlife habitats and support sea
turtles and other animals, birds and fish. We sponsor the largest employee
electric vehicle lease program in the United States.
Because we’re the largest producer of electricity in America, we do more
than most companies to improve the environment wherever we do business.
In addition, we’re a leader in protecting and improving the environment
through our employees’ actions, education and volunteerism.
Visit our web site that offers environmental education, ways to get involved, and
updates on our activities: www.southernco.com/site/planetpower
18
23. THIS IS NOT JOE
It’s Rutherford ... and he’s proud to make a home for his family near
our Goat Rock hydroelectric project in Georgia. On the land around
our generating plants and in our communities, we provide habitat
and support for many varieties of animal and plant life.
Soaring
Higher
24. THIS IS JOE
JoAnn Dagele –
executive assistant,
Suffern, New York –
helps keep our growing
New York operations
rolling along smoothly.
Extraordinary
THIS IS JOE
Josie Watson – marketing
administrative assistant,
Savannah, Georgia – uses
a customer-first approach
THIS IS JOE
to provide energy-efficient
Joe Lingold – real-time trader, solutions to customers in
Atlanta – buys and sells power the Southeast.
to be delivered and used almost
immediately in the eastern
United States.
25. THIS IS JOE THIS IS JOE
Joe Putzell – fuel handling Joe Colquitt – field services
operator, Northwest Indiana/ representative, Columbus,
Chicago – helps produce the Georgia – is always looking up,
490 megawatts we generate to and that kind of perspective
help power the Chicago area. helps us rank among the best
in customer satisfaction.
Here are a few of the Joes who are part of
Southern Company. But they are not ordinary
or average. Their extraordinary skills and
commitment help make us one of the world’s
leading competitive energy companies. THIS IS JOE
Kathy Jo York – electrical engineer,
Joes
Birmingham, Alabama – works on
computer technology that analyzes
power flow to help make our relia-
bility among the best in our industry.
THIS IS JOE
Joe Ho – project director,
Hong Kong – works on
developing fast-growing
business opportunities
in the Philippines and
Australia.
26. Have a Cup
What made 1999 such a good year?
We delivered on what we said we would do. We met our goals.
In Asia, we’re achieving better numbers than the business case
that led us there. We completed construction and began producing
power at Sual. It now provides the cleanest and lowest cost energy
in the Philippines.
Our competitive energy business is doing very well. We now
own, are building or have control of about 12,000 megawatts in
the highest growth areas of the United States outside the Southeast.
That’s about halfway to our goal. Overall, we now have nearly
50,000 megawatts of generation, more than anyone else in the
United States.
We’ve done all this while maintaining our focus on customers
and continuing our financial success.
So our strategy is working.
It is. We continue to expand our growth. And we’ve sharpened our
focus, targeting high-growth, high-use markets where we can be a
leading supplier.
But we haven’t met our overall goal. That’s to be the best invest-
ment in our industry. Financially, we had our best year ever in
1999. But when you achieve so much and it doesn’t show up on
the scorecard of our owners – our shareholders – it doesn’t give me
a warm feeling.
What are we doing to help improve our return to shareholders?
We’re going to continue to execute our strategy. And work to
continue increasing our earnings. As a competitive energy company,
we’ve become unique in our industry. I think our success should
earn us a higher multiple (stock price divided by earnings per
share) than the rest of our industry. I also think our stock is
significantly undervalued.
The stock market doesn’t seem to be rewarding our growth.
It isn’t. Our high-growth competitive business has created value.
But our shareholders haven’t been rewarded for that yet. So we are
22
27. of Joe...with Bill
looking at ways to unlock that value. We will continue to consider In addition, we’ve made changes to our senior executive team
various options that will enhance shareholder value. We want our without losing any momentum. Our aggressive growth created the
shareholders to benefit from the value our growth has created. need for a president and chief operating officer position. And I
named Allen Franklin, who was president of Georgia Power, to that
role. I also called on Marce Fuller to be the new chief executive
Where does our growth come from?
It comes from providing energy reliably and at low cost to large officer of Southern Energy.
energy users in markets where it’s needed most. And that’s what we I have great pride in all our employees and their commitment
do best. We’ve been doing that for a long time with our wholesale to making us the best in our industry.
operations in the Southeast. Deregulation of wholesale electricity
created opportunities for us to expand throughout North America. What makes Southern Company unique?
We’ve done that. And we’ve also taken advantage of opportunities We are a rapidly growing competitive energy business. We’re big.
to do that in areas we’ve targeted throughout the world. We’re smart. And we’re successful. We’re doing what we said we
would do. We’re meeting our goals.
In the United States, we have a network of generating plants
How is our regulated business doing?
I judge the success of the regulated business by reliability and cost. coast to coast. We have a growing energy trading and marketing
Our system is well operated, and we have maintained it well. It’s a group that sells our product. Internationally, our competitive
very successful business. energy business is performing strongly in Asia. And in the European
Union countries, we’re looking at replicating our successful North
American business.
What are we doing to make the electricity we produce cleaner?
We’re making changes to existing plants. All the new generation We offer the best prospects for long-term sustainable growth
we’re building will use state-of-the-art environmentally friendly along with the stability of a low-risk, financially strong regulated
technology. Our goal is to make every megawatt-hour cleaner – business. I don’t believe anyone else in our industry can do that as
on average – than it was the year before. And we’re doing that. well as we can.
What is the biggest change in Southern Company? Where do we go from here?
Not long ago, we were a southeastern regulated utility business. We have a good balance of businesses we know well. We’ll con-
Now we’re an international competitive energy giant with some tinue to look at expansion and acquisitions carefully and cautiously.
southeastern regulated utility operations. And we’ll continue to move aggressively to capitalize on the right
opportunities.
I like our position. The best market in the United States is the
How do we find the skills to be a competitive energy business?
No one has more expertise in the basic energy business than our Southeast, and we’re the major energy supplier there. The best
employees. And we haven’t departed from the basic energy business. market in the world is the United States, and we’re a major energy
We found new expertise in energy trading and marketing and supplier in fast-growing, high-use regions. And we’re a major sup-
risk management in the marketplace. There is a great willingness to plier in other key areas of the world as well.
join Southern Company because of our reputation as an industry We’ll continue to grow and work toward being the best invest-
leader and as a great place to work. ment in our industry.
23