Edison Posts Net Loss of $24 Million

Edison International posted a fourth-quarter net loss of $24 million, largely because of charges at its power-plant subsidiary and a write-off of airplane leases to United Airlines.

But improved performance at Edison’s utility arm, Southern California Edison, helped the Rosemead-based holding company post operating earnings that were well above Wall Street expectations.

Edison Chairman and Chief Executive John E. Bryson said Edison International continued to make strides in regaining its financial health, which was hurt by the California energy crisis in 2000 and 2001.

However, significant challenges remain at the company’s Edison Mission Energy subsidiary, Bryson said in a conference call with analysts.

Mission Energy, which operates power plants, has suffered from low electricity prices in the last 18 months as well as tight credit since the December 2001 collapse of Enron Corp.

Edison’s shares rose 41 cents to close at $12.39 on the New York Stock Exchange.

For the quarter ended Dec. 31, Edison’s per-share loss totaled 7 cents. The fourth quarter’s $24-million net loss included a $77-million bad-debt charge because a 220-megawatt power plant in England owned by Mission Energy was placed in receivership. Other charges included a $34-million write-off of two aircraft leases to UAL Corp.’s United Airlines, which is operating under Bankruptcy Court protection.

In the fourth quarter of 2001, Edison reported net income of $2.2 billion, or $6.65 a share. That included a gain of $6.70 a share from a settlement with the California Public Utilities Commission, which allowed Southern California Edison to recover $3.6 billion in power debts amassed during the energy crisis.

Fourth-quarter operating revenue was $2.5 billion, down 13% from $2.9 billion in the same period the previous year.

Edison’s “core” operating earnings were $56 million, or 18 cents a share, for the quarter. Core operating earnings exclude charges and discontinued operations as well as Edison’s write-downs and subsequent write-ups of power debts during the last few years. Analysts surveyed by Thomson First Call had predicted operating earnings of 2 cents.

In the same quarter of 2001, Edison International posted a core operating loss of $11 million, or 3 cents a share.

Southern California Edison posted core earnings of $153 million for the fourth quarter, compared with $121 million in the same quarter of 2001, primarily because of a regulatory decision rewarding the utility for meeting certain performance benchmarks.

Mission Energy narrowed its loss in the fourth quarter to $13 million from $97 million.

For 2002, Edison International recorded net earnings of $1.1 billion, or $3.31 a share, compared with 2001 net earnings of $1 billion, or $3.18. Core earnings for 2002 rose to $655 million, or $2.02, from $424 million, or $1.30, in 2001.

Operating revenue rose to $11.8 billion in 2002 from $11.3 billion in 2001.