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.
Frequently Asked Questions
Williams Companies expects to achieve recurring earnings of $2.35 per share for 2001. However, their estimated unaudited income from continuing operations is projected to be $2.01 per diluted share for the same period.
Enron's bankruptcy resulted in an approximate 12 cents per share charge in the fourth quarter of 2001 for credit exposure, which is included in the company's reported recurring earnings for the year.
The full release of unaudited 2001 earnings has been delayed because the company is conducting an internal assessment of its contingent obligations related to its former telecommunications business, Williams Communications Group, Inc. (WCG). This is due to plans to modify contingent financial commitments and recent developments in the telecommunications industry.
A reconciliation of estimated income from continuing operations to recurring earnings, which includes all non-recurring items except for a specific contingency related to the former telecommunications business, is provided in Exhibit 99.1 of this filing, which is a copy of the company's press release dated January 29, 2002.