8-KOther Events

WILLIAMS COMPANIES, INC. 8-K Report (Mar 7, 2002)

Filed March 7, 2002For Securities:WMB

Summary

Williams Companies, Inc. (WMB) reported a significant consolidated net loss of $477.7 million ($0.95 per diluted share) for the fiscal year 2001. This loss was heavily impacted by pre-tax charges totaling $2.05 billion (after-tax $1.31 billion, or $2.62 per diluted share) stemming from contingent obligations associated with its former telecommunications subsidiary, Williams Communications Group, Inc. (WCG). Despite this substantial net loss, the company highlighted record recurring earnings for 2001, reaching $2.35 per share, an increase from $2.33 per share in 2000, indicating operational resilience outside of the specific charges.

Key Highlights

  • 1Reported a 2001 consolidated net loss of $477.7 million ($0.95 per diluted share).
  • 2The net loss included significant pre-tax charges of $2.05 billion related to former telecom subsidiary Williams Communications Group, Inc. (WCG).
  • 3The after-tax impact of WCG charges was $1.31 billion, or $2.62 per diluted share.
  • 4Income from continuing operations for 2001 was $835.4 million ($1.67 per diluted share), down from $965.4 million ($2.15 per diluted share) in 2000.
  • 5Continuing operations results for 2001 included $213 million pre-tax charges related to WCG and $37 million related to a Texas Supreme Court decision.
  • 6Reported record recurring earnings of $2.35 per share for 2001, slightly up from $2.33 per share in 2000.
  • 7A reconciliation of reported to recurring earnings is available in Exhibit 99.1.

Frequently Asked Questions

The primary reason for the significant consolidated net loss of $477.7 million in 2001 was the inclusion of substantial pre-tax charges totaling $2.05 billion related to contingent obligations of its former telecommunications subsidiary, Williams Communications Group, Inc. (WCG).

Income from continuing operations for 2001 was $835.4 million ($1.67 per diluted share), which was lower than the $965.4 million ($2.15 per diluted share) reported in 2000. This decrease was partly due to charges related to WCG and a court decision impacting Transcontinental Gas Pipe Line Corporation.

Recurring earnings are a non-GAAP measure that excludes certain items to provide a view of ongoing operational performance. Williams Companies reported record recurring earnings for 2001 at $2.35 per share, an increase from $2.33 per share in 2000, indicating a positive trend in core business operations despite the large net loss.

The Texas Supreme Court denied Transcontinental Gas Pipe Line Corporation's petition for review of a matter, resulting in a $37 million pre-tax charge. Transco plans to seek a rehearing, suggesting this issue may continue to have financial implications.