|
January 23, 2002
Naperville, Ill. - Nicor Inc. today reported fourth quarter 2001 net income, operating income and diluted earnings per share of $45.2 million, $69.2 million and $1.01, respectively. This compares to fourth quarter 2000 net income, operating income and diluted earnings per share of $39.9 million, $69.5 million and $.87, respectively. The fourth quarter earnings per share increase is attributable to improved performance in the company's gas distribution and other energy-related businesses, including equity income from joint ventures; lower interest expense and the company's common stock repurchase program.
For the twelve months ended December 31, 2001, net income, operating income and diluted earnings per share, excluding mercury-related impacts, were $136.3 million, $231.3 million and $3.01, respectively. This compares to net income, operating income and diluted earnings per share for the same 2000 period, excluding mercury-related charges, of $136.4 million, $242.1 million and $2.94, respectively. The primary contributors to the per share improvement were lower net interest expense and the positive impact of the company's common stock repurchase program. These contributing factors were partially offset by sharply lower results in the company's shipping segment.
For the twelve months ended December 31, including the mercury-related amounts in both the current and prior year periods, net income, operating income and earnings per share were $143.7 million, $243.5 million and $3.17 per share, respectively, in 2001 compared with $46.7 million, $94.1 million and $1.00 per share, respectively, in 2000.
A $9 million credit to operating expense was recorded in the third quarter of 2001 by the company's gas distribution business to lower its mercury-related reserve. In the third quarter of 2000, this business segment recorded $148 million in operating expense for a mercury inspection and repair program. Full-year results for 2001 also reflect $3.2 million of pretax mercury-related recoveries from third parties, including $0.9 million in the fourth quarter.
"We are pleased that given the challenges our nation, our industry and our company have faced this past year, we were able to post higher earnings per share," said Thomas L. Fisher, chairman, president and chief executive officer. "We continue to progress in all of our growth objectives and remain confident that the strategies we have outlined for our businesses will allow us to achieve our earnings goals in the future. With regard to our 2002 outlook, assuming normal weather, we expect earnings to be in the range of $3.10 to $3.25 per share, and we anticipate that first quarter earnings will be in the range of $.75 to $.90 per share. We expect accelerated growth in our energy-related ventures. Due to the negative impacts of significantly lower 2001 pension plan returns, higher health care costs and continuing weak economic conditions, gas distribution and shipping segment results are expected to remain relatively unchanged in 2002."
More detailed results for each segment for 2001's fourth quarter and twelve-month period follow:
- Gas distribution operating income, excluding mercury-related impacts, increased in the fourth quarter to $60.7 million, compared to $59 million a year ago. For the twelve months ended December 31, 2001, operating income, excluding mercury-related impacts, decreased to $211.4 million, compared to $212.9 million in 2000. The Chicago Hub and contributions from the company's performance-based rate plan favorably impacted both the quarter and twelve-month period. Quarterly improvements also came from decreased operating costs. Lower gas deliveries due to warmer weather, energy conservation and a slowdown in the economy had negative impacts on both the quarter and full-year period. The impact on earnings from warmer weather was partially offset by weather protection benefits in both periods. Full-year results included higher operating costs, such as bad debt expense, company use of natural gas and customer service costs, related primarily to significantly higher natural gas prices last winter.
- Containerized shipping operating income decreased to $6.5 million in the fourth quarter from $9 million a year ago. For the twelve months ended December 31, 2001, shipping operating income decreased to $17.6 million from $25.7 million in 2000. The declines in both periods are primarily the result of a decrease in volumes shipped due to the economic slowdown in the Caribbean region.
- Other energy ventures operating income for the quarter was relatively unchanged. Full-year results include improved performance from our primary energy-related ventures, particularly our residential products and services business, which was more than offset by the absence of income from a large construction project recorded in the second quarter of 2000.
- Other positive factors affecting comparisons in both periods include lower overall net interest expense and higher results from our retail marketing joint venture, Nicor Energy.
ABOUT NICOR, INC.
Nicor (NYSE: GAS) is a holding company. Its principal businesses are Nicor Gas, one of the nation's largest gas distribution companies, and Tropical Shipping, a containerized shipping business serving the Caribbean region. Nicor also owns several unregulated energy-related businesses and is a partner in Nicor Energy, a retail energy marketer. For more information, visit the Nicor website at www.nicor.com. |
