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Enron posts third-quarter loss on charges
HOUSTON, Oct 16 (Reuters) - Energy trading giant Enron Corp. <ENE.N> on Tuesday reported a third-quarter net loss as $1.01 billion in write-downs and restructuring charges offset strong results at its core wholesale marketing and trading division.
Before charges, however, profits were up 35 percent, the company said, adding that it is on track to achieve strong earnings growth.
Enron reported a net loss of $638 million, or 84 cents per share, compared with year-earlier net income of $271 million, or 34 cents a share.
The company took write-downs of $287 million for its troubled Azurix water venture and $544 million for investments including its retail electricity provider, New Power Co. Results for the latest quarter also include a $180 million charge to restructure broadband operations as well as preferred stock dividends.
"After a thorough review of our businesses, we have decided to take these charges to clear away issues that have clouded the performance and earnings potential of our core energy businesses," Chairman and Chief Executive Kenneth Lay said in a statement.
Excluding the charges and dividends, earnings rose to $393 million, or 43 cents per share, from $292 million, or 34 cents per share, a year earlier. Analysts polled by Thomson Financial/First Call had expected a profit of 42 cents to 45 cents per share, with a mean estimate of 43 cents.
The results met expectations for a rocky quarter that included the surprise departure of President and Chief Executive Jeff Skilling in August, after just six months at the helm.
Enron reaffirmed its previously stated earnings targets of 45 cents a share before special items in the fourth quarter, $1.80 for the full year and $2.15 for 2002.
Enron shares closed on Monday at $33.17, down $2.64 or 7.3 percent on the New York Stock Exchange. So far this year, the stock has fallen some 60 percent, far worse than the 25 percent loss of the Standard & Poor's utilities index <.SPU>.
08:01 10-16-01 |
