Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Williams Companies, Inc. (WMB) -- Ignore unavailable to you. Want to Upgrade?

To: samoyed who wrote (195)	5/3/2000 8:15:00 AM
From: Justin C	Read Replies (3) \| Respond to of 271

Williams' 1st Quarter Results Are Nearly Double Last Year's TULSA, Okla., May 3 /PRNewswire/ -- Williams (NYSE: WMB) today announced unaudited first quarter 2000 earnings of $121.3 million, or 27 cents per share, representing income before the cumulative effect of a change in accounting principle. This is a 107 percent increase over the same period last year, driven by record segment profit from the company's energy businesses. The change in accounting principle was a result of a decision to shift from the percentage-of-completion method for revenue recognition to the completed-contract method at the Solutions segment. Unaudited net income including this change was $99.7 million, or 22 cents per share, compared with net income for the first quarter of 1999 of $52.9 million, or 12 cents per share. "For the first time since the 1998 MAPCO acquisition, market conditions are combining with our strategy of disciplined cost management and aggressive capital expansion to demonstrate the earnings capacity of our Energy Services business unit," said Keith Bailey, chairman, president and chief executive officer. "When combined with the continued strong and steady performance of our Gas Pipeline unit, energy's contribution to 2000 earnings is on track to be substantially higher than last year. "We are particularly proud of results from the electric power side of the business, where we realized significantly higher segment profit and saw physical trading volumes increase 124 percent. We now have tolling access to some 8,900 megawatts of power generation. "Our communications business is on track to deliver the nation's largest and most advanced broadband network at year end, on time and on budget," Bailey said. "We are rapidly approaching the time when our entire network is commercially available to serve growing demand, and when SBC Communications is allowed to fully utilize our services following the regulatory relief that is expected this year." Following is a summary of Williams' major business groups: Gas Pipeline, which provides natural gas transportation and storage services through systems that span the United States, reported first quarter 2000 segment profit of $197.3 million, compared with $186.8 million during the same period a year ago. Improved results are primarily due to additional revenues from the settlement of a prior rate case and equity earnings from investments in new projects, partially offset by the cost of consolidating the workforces of the Central and Texas Gas pipeline systems to achieve greater future efficiency. During the second quarter of 2000, the company anticipates it will recognize the favorable impact of a recent regulatory order received by the Transco pipeline system. Energy Services, which provides a full spectrum of traditional and advanced energy products and services, reported first quarter 2000 segment profit of $205.1 million, compared with $125.1 million during the same period a year ago. Substantially improved results were realized in electric power marketing and trading, reflecting significantly higher segment profit from new contract origination, higher ancillary service revenues and volumes that more than doubled from the same period a year ago. Natural gas liquids sales volumes increased 59 percent and average processing margins were approximately 18 cents per gallon, compared with less than 2 cents during the same period last year. Also increasing results were higher natural gas production revenues -- driven mainly by last year's acquisition of oil and natural gas properties in Wyoming, and improved market prices. These improved results were partially offset by the costs of restructuring some field and office workforces. This action is expected to achieve greater efficiency and reduce ongoing operating expenses by as much as $60 million per year by 2002. Also offsetting were losses associated with certain propane storage transactions. Communications, which includes a national fiber-optic network, single-source communications systems integration and multiple technology applications for businesses, reported a first quarter 2000 segment loss of $70.2 million, compared with a loss of $51.5 million during the same period a year ago. The segment loss is due primarily to the increased expense of building and staffing a major telecommunications company to fully leverage a planned 33,000-mile national fiber-optic network. By the end of the first quarter, 24,111 miles of the network were in operation. Partially offsetting these losses was income of $51.7 million from the sale of certain investments. About Williams Williams, through its subsidiaries, connects businesses to energy and communications. The company delivers innovative, reliable products and services through its extensive networks of energy-distributing pipelines and high-speed fiber-optic cables. Williams information is available at www.williams.com. Portions of this document may constitute "forward-looking statements" as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company's annual reports filed with the Securities and Exchange Commission.