CHICAGO, July 26, 2002 — Exelon Corp. announced that its second quarter 2002 earnings from operations, excluding the gain on the sale of an investment, are expected to be more than 15% higher than the consensus estimate of $0.95 per share.
The company’s prior guidance for the second quarter was 20% of the full year 2002 earnings range of $4.55 per share to $4.85 per share, which suggested operating earnings for the quarter between $0.91 per share and $0.97 per share. Exelon reported second quarter 2001 operating earnings of $0.97 per share. Guidance for the full year 2002 remains $4.55 to $4.85 per share.
Exelon’s second quarter reported results will include a gain of about $116 million, $0.36 per share, related to Exelon Enterprises’ sale of its 49% interest in AT&T Wireless PCS of Philadelphia, LLC to a subsidiary of AT&T Wireless Services. The transaction closed on April 1, 2002. Exelon’s guidance for operating earnings for the second quarter and for the full year 2002 excludes that gain. Operating earnings guidance for the full year 2002 also excludes the goodwill impairment and severance charge booked in the first quarter.
The better than expected second quarter results reflect a weather-related increase in retail kilowatt-hour deliveries as a result of hot weather in late June. Also, the Cost Management Initiative contributed to strong results for the quarter, which helped offset the impact of lower revenues resulting from lower power prices compared to a year ago.
However, given the continued deterioration of wholesale power prices, Exelon is not increasing earnings guidance for the full year at the present time.
Exelon Corporation is one of the nation’s largest electric utilities with approximately 5 million customers and more than $15 billion in annual revenues. The company has one of the industry’s largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately 5 million customers in Illinois and Pennsylvania and gas to more than 440,000 customers in the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.