Edison International Reports Financial Results for the First Quarter of 2004

May 07, 2004

May 7, 2004

ROSEMEAD, Calif., May 7, 2004 -- Edison International (NYSE: EIX) recorded consolidated earnings per share of 30 cents in the first quarter of 2004, compared to 17 cents in the first quarter of 2003 on a reported basis.  The increased earnings primarily reflect higher operating results at Edison Mission Energy (EME) and a gain on the sale of its interest in Four Star Oil & Gas.

“We are off to an encouraging start for the year, led by improved results at Edison Mission Energy and continued strength at Southern California Edison,” said EIX Chairman John Bryson. 

Reported earnings in the first quarter of 2003 included a three-cents-per-share charge at EME from the implementation of a new accounting principle and one cent per share in earnings from discontinued operations at SCE.  EIX’s earnings from continuing operations, which exclude the two items above, were 30 cents per share in the first quarter of 2004 compared to 19 cents per share in the same period last year.   
  
FIRST QUARTER EARNINGS DETAIL

Earnings (Loss) from Continuing Operations

SCE earnings from continuing operations were essentially unchanged with $100 million in the first quarter of 2004, compared to $99 million in the same period last year.  
           
EME’s first quarter 2004 earnings from continuing operations were $31 million compared to a loss of $8 million in the same period last year.  The improved results are primarily due to stronger operating performance at the Illinois Plants, driven by higher merchant generation and wholesale energy prices, and higher ancillary services and mark-to-market impacts on forward contracts at the First Hydro project in the UK.  The Contact Energy projects in New Zealand, the Loy Yang B project in Australia and the Paiton project in Indonesia also contributed to the earnings increase.   First quarter results for 2004 include a $29 million after-tax gain from the sale of EME’s interest in Four Star Oil & Gas.  These favorable items were partially offset by outages in 2004 at the Homer City project and 2003 earnings at Four Star Oil & Gas, which did not occur in 2004 due to the sale.  EME's earnings are seasonal with higher earnings expected during the summer months. 

Edison Capital’s earnings for the first quarter of 2004 were $11 million, down $4 million from the same period last year.  This decrease is primarily due to a maturing investment portfolio which produces lower income.   

The first quarter 2004 losses from Mission Energy Holding Company of $25 million and “EIX parent company and other” of $19 million were essentially unchanged from the same period last year. 

Earnings from Discontinued Operations

Discontinued operations of $3 million in the first quarter of 2003 reflect earnings from SCE’s fuel oil pipeline and storage business, which was sold in the third quarter of 2003.

Change in Accounting Principle
        
Edison Capital’s 2004 results include a $1 million charge for the cumulative effect of a change in accounting principle reflecting the impact of Edison Capital’s implementation of an accounting standard that requires the consolidation of certain variable interest entities.  EME’s 2003 results include a $9 million charge related to the accounting standard for recording asset retirement obligations.  Because SCE follows accounting principles for rate-regulated enterprises, implementation of the asset retirement accounting standard did not affect its earnings.

 
Quarter Ended
March 31,
 
Earnings (Loss) Per Share (Unaudited)
2004
2003
Change

Southern California Edison

$0.31
$0.30
$0.01
Edison Mission Energy
0.10
(0.02)
0.12
Edison Capital
0.03
0.04
(0.01)
Mission Energy Holding Co.
(0.08)
(0.07)
(0.01)
EIX parent company and other
(0.06)
(0.06)
--

EIX Consol. Earnings from
Continuing Operations
0.30
0.19
0.11

Earnings from Discontinued Operations
--
0.01
(0.01)
Cumulative Effect of Accounting Change
--
(0.03)
0.03

 
Total EIX Consolidated Earnings
$0.30
$0.17
$0.13

 
Quarter Ended
March 31,
 
Earnings (Loss) (in millions) (Unaudited)
2004
2003
Change

Southern California Edison

$100
$99
$1
Edison Mission Energy
31
(8)
39
Edison Capital
11
15
(4)
Mission Energy Holding Co.
(25)
(24)
(1)
EIX parent company and other
(19)
(19)
--

EIX Consol. Earnings from
Continuing Operations
98
63
35

Earnings from Discontinued Operations
--
3
(3)
Cumulative Effect of Accounting Change
(1)
(9)
8

 
Total EIX Consolidated Earnings
$97
$57
$40

Additional Attachments:

###

Based in Rosemead, Calif., Edison International is the parent company of Southern California Edison, Edison Mission Energy and Edison Capital.