8-KOther Events

CONSOLIDATED EDISON INC 8-K Report (Apr 22, 2004)

Filed April 22, 2004For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) filed a Form 8-K on April 22, 2004, to report its first-quarter financial results for 2004. The report indicates a slight increase in net revenues for Con Edison and its subsidiaries, Consolidated Edison Company of New York, Inc. and Orange and Rockland Utilities, Inc., compared to the same period in 2003. However, operating income remained relatively flat, and net income for common stock saw a marginal increase, largely driven by the performance of the New York subsidiary. The company cited higher depreciation and property tax expenses, along with reduced pension-related credits, as key factors impacting results. Additionally, Con Edison's consolidated results were affected by lower gross margins from its unregulated subsidiaries and increased interest expenses. The filing also highlights the absence of a significant one-time provision for customer refunds of excess electric earnings that was recognized in the prior year's first quarter, which benefited 2003 results. Investors should note that while overall revenues showed growth, several expense increases and margin pressures are impacting profitability. The full financial details, including condensed consolidated balance sheets and income statements, were provided in an attached press release furnished with the 8-K filing.

Key Highlights

  • 1Consolidated Edison, Inc. reported first-quarter 2004 results on April 22, 2004.
  • 2Consolidated net revenues increased slightly to $1,169 million in Q1 2004 from $1,157 million in Q1 2003.
  • 3Net income for common stock saw a modest increase to $155 million in Q1 2004 from $154 million in Q1 2003.
  • 4Key negative impacts on earnings included higher depreciation, property tax expense, and reduced pension benefit credits.
  • 5Con Edison's unregulated subsidiaries experienced lower gross margins on electric sales in Q1 2004.
  • 6A significant provision for customer refunds in Q1 2003 favorably impacted the prior year's results, making the current year's comparison appear less robust.
  • 7The filing includes a press release with detailed financial statements for the period.

Frequently Asked Questions

The slight increase in net income for common stock in the first quarter of 2004 was driven primarily by sales growth and the absence of a significant provision for customer refunds of excess electric earnings that was recognized in the first quarter of 2003. This provision in 2003 had a material positive impact on that period's reported net income.

The primary negative factors impacting operating income included higher depreciation expenses, increased property tax expenses, and a reduction in net credits related to pensions and other post-retirement benefits. Additionally, Con Edison's unregulated subsidiaries experienced lower gross margins on electric sales, and the company faced higher interest expenses.

No, the press release containing the financial statements, including condensed consolidated balance sheets and income statements, was furnished as an exhibit to this 8-K filing. As stated in the filing, this information shall not be deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be incorporated by reference into any other SEC filing.