Summary
Exelon Corporation reported third quarter 2001 diluted earnings per share of $1.25, exceeding their recent guidance primarily due to higher unbilled revenue estimates. However, reported earnings were negatively impacted by $0.16 per share from three non-recurring items: employee severance, a writedown of an investment in Corvis, and litigation reserves. On a pro forma basis, which assumes the merger with Unicom Corporation occurred earlier, third quarter 2000 earnings were $1.27 per diluted share. The company reaffirmed its full-year 2001 earnings guidance of $4.30 to $4.45 per diluted share and provided an initial outlook for 2002, forecasting diluted earnings per share in the range of $4.45 to $4.85, reflecting economic slowdown and wholesale price volatility. Operational highlights for the quarter include a 7% increase in energy sales by Exelon Generation, with its nuclear fleet operating above target and fossil operations demonstrating strong performance. ComEd also showed improved reliability in its delivery operations, setting new peak load records during a hot summer. Despite strong operational performance, lower wholesale energy market prices adversely affected Exelon Generation's Power Team performance compared to expectations.
Key Highlights
- 1Exelon reported Q3 2001 diluted EPS of $1.25, exceeding guidance due to higher unbilled revenue.
- 2Three non-recurring items reduced Q3 2001 EPS by $0.16, including severance costs, a Corvis investment writedown, and litigation reserves.
- 3Full-year 2001 EPS guidance remains at $4.30-$4.45 per diluted share.
- 4Initial 2002 EPS outlook is projected between $4.45-$4.85 per diluted share, factoring in economic slowdown.
- 5Exelon Generation's energy sales increased by 7% year-over-year, with strong operational performance from its nuclear and fossil fleets.
- 6ComEd's delivery operations showed improved reliability, handling record peak loads.
- 7Lower wholesale electricity market prices negatively impacted Exelon Generation's Power Team performance.