AKRON, Ohio - FirstEnergy Corp. on Tuesday
reported a loss in the second quarter because of discontinued
operations and unusual charges and said it is restating past
The electric utilities holding company also reduced its 2003
In the second quarter, FirstEnergy lost $57.9 million, or 20
cents per share, compared with expected second quarter 2002 restated
net income of $216 million, or 73 cents per share.
FirstEnergy's earnings were affected by $63 million in costs
associated with the repair of its idled Davis-Besse nuclear power
The plant along western Lake Erie has been shut down since
February 2002, when it was closed for maintenance. A month later a
leak was discovered that had allowed boric acid to eat nearly
through the 6-inch-thick steel cap covering the plant's reactor
Excluding unusual charges, second quarter earnings were $152.1
million, or 52 cents per share. The Thomson First Call estimate of
surveyed brokers was 51 cents per share.
First Energy revenue totaled about $2.9 billion, the same as in
the year-ago period.
The company issued a letter to brokers Tuesday advising that its
2002 financial statements will be restated and that investors are
cautioned not to rely on the previously issued 2002 statements, or
the results previously reported for the first quarter of 2003.
FirstEnergy on Tuesday updated its 2003 earnings guidance
previously estimated at $3.35 to $3.55 per share. The company's
estimate is now in the range of $2.68 to $2.88 per share. The
revised guidance continues to exclude expenses associated with the
extended outage at Davis-Besse and unusual charges. Including these
items, FirstEnergy's revised 2003 guidance is $1.96 to $2.16 per
Unusual items affecting 2003 second quarter results included a
charge of $158.5 million, or 32 cents per share, based on the New
Jersey Board of Public Utilities' decision on Jersey Central Power
& Light's rate proceeding. That ruling reduced the amount of
deferred energy and other costs that JCP&L can recover.
ON THE NET
Nuclear Regulatory Commission: http://www.nrc.gov/