Edison Profit Up 18%, Beats Expectations
Edison International, California’s third-largest electric utility company, said Friday that its second-quarter net income rose a better-than-expected 18%, partly on investments in power plants and wires in the Netherlands and Australia.
The Rosemead-based company said net income rose to $145 million, or 40 cents a share, from $139 million, or 34 cents, in the year-earlier quarter. The company was expected to earn 37 cents, the average estimate of analysts surveyed by First Call Corp.
Edison also announced plans to buy back $500 million, or about 5%, of shares outstanding, extending a program that has purchased $2.2 billion in shares since 1995.
In the first quarter since California opened electricity sales to competition, Edison maintained a steady income base at home and more than tripled earnings from power plant and other investments outside the United States.
Southern California Edison, the company’s utility, reported a 6.5% drop in profit in the quarter, stemming mostly from a mandated cut in the rates it charges customers and a program that accelerated payments on its power plant debt. Those reductions were partially offset by improved performance at its San Onofre nuclear power plant.
Edison shares closed unchanged at $29.13 on the New York Stock Exchange.
At a Glance
Other earnings, excluding one-time gains and charges unless noted:
* Dole Food Co.’s second-quarter earnings rose 17% to $82.1 million, or $1.35 a diluted share, exceeding estimates of $1.31, as its price increases in Europe and Japan offset the effect of the strong dollar. The producer and marketer of fresh fruit said revenue rose 5.1% to $1.16 billion.
* EMC Corp., maker of data storage systems, said its second-quarter profit rose 47% to $189.5 million, or 36 cents a diluted share, exceeding estimates by 3 cents, on a 33% jump in revenue to $952 million.
* Hambrecht & Quist Group said profit in its fiscal third quarter rose 36% to $13.9 million, or 52 cents a diluted share, on a 25% jump in revenue to $102.8 million. The earnings far exceeded the 45-cent forecast by Morgan Stanley, Dean Witter, Discover & Co. analyst Henry McVey and by Putnam, Lovell, de Guardiola & Thornton analyst Lauren Smith. Revenue from underwriting securities more than doubled to $28.2 million.
* Meatpacker IBP Inc. reported flat second-quarter earnings of $34 million, or 36 cents a diluted share, as increased fresh pork and processed meat sales offset lower beef sales. Sales were also unchanged at $6.6 billion. The results exceeded estimates of 26 cents.
* Premark International Inc., a maker of kitchen equipment and building products, said second-quarter profit rose 14% to $32.3 million, or 50 cents a diluted share, two cents higher than estimates, on a 14% rise in sales to $675.3 million.
* Tyco International Ltd., provider of security systems, said its fiscal third-quarter operating profit rose 62% to $320.2 million, or 54 cents a diluted share, beating the forecast of 51 cents. Sales jumped 27% to $3.24 billion.
