BEDMINSTER, N.J., July 16, 2002 — NUI Corp. recently announced that it will take immediate steps to cease operations of TIC’s unprofitable divisions.
Reaffirming its commitment to maintain a conservative business strategy and a strong balance sheet, NUI will cease operation of TIC’s telecom equipment and shipping divisions. NUI will transfer management of TIC’s profitable network services and wireless divisions to NUI Telecom, Inc., its telecommunications subsidiary.
NUI announced in April its intention to sell TIC but received no acceptable offers for the company. Therefore, NUI opted to cease TIC’s unprofitable activities and to strengthen its balance sheet by eliminating poor-performing operations.
This decision will result in NUI recording a pre-tax loss of approximately $12 million, representing a write-down of all remaining assets and results related to TIC’s unprofitable operations. The write down will be included in NUI’s third quarter results and will be recorded in discontinued operations. In the fourth quarter the company expects to record additional charges related to severance and other expenses associated with the final stages of ceasing the operations of TIC’s unprofitable businesses.
The company plans to include further information regarding these charges in its third quarter earnings release on July 24, 2002.
On July 12, NUI issued initial earnings guidance for fiscal 2003 of $1.90 to $2.00 per share, including the impact of a planned equity offering during the fiscal year. The steps being taken to address TIC’s operations do not affect the company’s initial guidance for fiscal 2003.
NUI Corporation, based in Bedminster, NJ, provides energy and telecommunications services. NUI operates businesses involved in natural gas distribution, storage and pipeline operations; wholesale energy trading and portfolio management; retail energy sales and energy consulting; energy and environmental project development; telecommunications; and digital mapping and customer information systems and services. Visit us as www.nui.com.