Possible short: FPL
Chart looks tasty after rebound.
wr
Monday June 3, 9:28 am Eastern Time
FPL Group Says Stock Offering Will Dilute 2002 Per-Share Earnings
JUNO BEACH, Fla. -- FPL Group Inc. lowered its full-year per-share earnings outlook, saying it plans to offer an additional five million shares and $400 million of equity units.
The electric utility said Monday it expects to earn $4.70 a share to $4.75 a share, excluding items, down from its earlier estimate of $4.78 a share to $4.82 a share. The company reiterated its 2003 earnings estimate of $5.10 to $5.20 a share.
FPL said it will use proceeds from the offerings to repay debt, help pay for controlling interest in the Seabrook Nuclear Generating Station in New Hampshire, and add to its wind-energy portfolio.
The utility announced in April it would purchase an 88% stake in Seabrook for $836.6 million, greatly increasing its power-generating capacity in the Northeast. The plant produces 7% of the electricity in New England . FPL reiterated Monday that it expects to complete the deal by year-end.
The equity units will consist of a $50 FPL Group Capital debenture and a contract to purchase FPL common stock in the future.
In 2001, FPL earned $792 million, or $4.69 a share, before items, on revenue of $8.48 billion. Its principal subsidiary, Florida Power & Light Company, serves more than four million customers in Florida .
--Tim Paradis and Diana Rosenberg of Dow Jones Newswires |
