Summary
The Williams Companies, Inc. (WMB) filed an 8-K on January 30, 2002, to provide updated financial guidance and disclose a delay in its full 2001 earnings release. The company expects to report recurring 2001 earnings per share of $2.35, a slight increase from $2.33 in 2000. However, unaudited income from continuing operations is projected to be $2.01 per share, down from $2.15 in the prior year. The recurring earnings figure includes a $0.12 per share charge in the fourth quarter related to credit exposure from Enron's bankruptcy.
Key Highlights
- 1Williams expects recurring 2001 earnings per share of $2.35, up from $2.33 in 2000.
- 2Unaudited income from continuing operations for 2001 is projected at $2.01 per diluted share, down from $2.15 in 2000.
- 3A $0.12 per share charge for credit exposure related to Enron's bankruptcy is included in the 2001 recurring earnings.
- 4The company's full 2001 earnings release is delayed pending an internal assessment of contingent obligations related to Williams Communications Group, Inc. (WCG).
- 5This assessment is driven by plans to eliminate credit-rating and equity-price triggers in WCG's contingent financial commitments and recent telecom industry developments.
- 6A reconciliation of estimated income from continuing operations to recurring earnings, excluding certain non-recurring items (except for a contingency related to the former telecom business), is provided in Exhibit 99.1.