8-KOther Events

AMEREN CORP 8-K Report (Feb 11, 2003)

Filed February 11, 2003For Securities:AEE

Summary

Ameren Corporation (AEE) filed this 8-K on February 11, 2003, to report its 2002 earnings and provide an update on the company's performance and outlook. The report highlights a decrease in net earnings for 2002 compared to 2001, primarily due to a significant after-tax charge related to a voluntary retirement program and restructuring costs associated with plant retirements. Despite these charges, the company's ongoing earnings per share for 2002 fell within its previously issued guidance. The press release also details the successful completion of a significant rate case settlement in Missouri and the strategic acquisition of CILCORP Inc., which was completed in January 2003. Management expressed optimism about the CILCORP acquisition, expecting it to be accretive to earnings and provide long-term growth opportunities. Looking ahead to 2003, Ameren reaffirmed its earnings per share guidance, acknowledging persistent challenges in the energy sector but emphasizing the benefits of cost-saving measures and the integration of CILCORP.

Key Highlights

  • 1Ameren reported 2002 net earnings of $382 million, or $2.61 per share, a decrease from $469 million, or $3.41 per share, in 2001.
  • 2Ongoing earnings for 2002 were $440 million, or $3.01 per share, which met the company's guidance range of $3.00 to $3.10 per share.
  • 3The company incurred a significant $58 million (40 cents per share) after-tax charge in 2002 for a voluntary retirement program and restructuring related to plant operations.
  • 4Ameren announced the completion of the acquisition of CILCORP Inc. on January 31, 2003, which is expected to be accretive to earnings.
  • 5For the fourth quarter of 2002, Ameren reported a net loss of $32 million, or 20 cents per share, compared to net earnings of $49 million, or 35 cents per share, in the prior year's fourth quarter.
  • 6The company reaffirmed its 2003 earnings per share guidance to be in the range of $2.80 to $3.05.
  • 7Total electric revenues in 2002 were flat, impacted by warmer weather, economic weakness on industrial sales, and rate reductions.

Frequently Asked Questions

The decrease in net earnings was primarily due to a significant after-tax charge of $58 million, or 40 cents per share, related to a voluntary retirement program and restructuring charges associated with the retirement of the company's Venice, Ill., plant and the temporary suspension of operations at its Meredosia, Ill., plant.

Yes, Ameren's ongoing earnings per share for 2002 were $3.01 ($3.00 diluted), which fell within the company's previously provided guidance range of $3.00 to $3.10 per share for 2002 ongoing earnings.

Ameren completed the acquisition of CILCORP Inc. on January 31, 2003. The company expects this acquisition to be accretive to earnings in its first year and to provide meaningful long-term growth opportunities. The 2003 earnings guidance range incorporates the expected benefits from this acquisition.

While warmer weather boosted residential and commercial electric sales, this was partially offset by a weak economy impacting industrial sales and rate reductions from a Missouri electric rate case settlement. Additionally, lower interchange revenues and sales were due to lower energy prices and reduced availability of low-cost generation. Operating expenses increased due to higher employee benefit costs, plant maintenance, and labor costs.