DTE Energy Reports First Quarter Earnings; Non-Regulated Businesses Continue Upward Trend

Apr 25, 2001, 01:00 ET from DTE Energy Co.

    DETROIT, April 25 /PRNewswire/ -- DTE Energy Co. (NYSE:   DTE) today
 announced 2001 first quarter earnings of $138 million, or $0.98 per basic
 share, compared to earnings for the first quarter 2000 of $117 million, or
 $0.81 per share.
     "The first quarter was a strong one for the company as revenues continued
 to grow," said Anthony F. Earley Jr., DTE Energy chairman and chief executive
 officer.
     DTE Energy's non-regulated business revenue increased 251 percent to $817
 million, with net earnings of $27 million, or $0.19 per share, a gain of 21
 percent over 2000.
     "We continue to see a growing contribution to earnings from our non-
 regulated businesses," Earley said.  "This is consistent with our growth plan
 to achieve net income of $125 million from these businesses by year-end.  In
 line with this strategy, we sold an interest in one coke battery project
 during the quarter and finalized the purchase of six synfuel projects from MCN
 Energy Group."
     The first quarter results include two items that impact comparability.
 First quarter operating performance of $0.98 per share in 2001 would have been
 $0.07 per share higher prior to the adoption of the new accounting standard
 SFAS No. 133, relating to the use of derivatives.  This new accounting
 standard, while impacting the first quarter, is expected to have a reverse
 impact in other quarters and not impact the total year.  Additionally, the
 first quarter of 2001 reflected the suspension of the fuel clause, which
 increased first quarter 2001 earnings by $0.21 per share.
     Closure of the proposed merger with MCN Energy is another critical
 component of DTE Energy's growth strategy.  A number of key actions during the
 first quarter allowed both companies to accelerate their integration efforts
 and begin initiating the merger synergies identified.  These actions include:
     *  Negotiated a revised merger agreement with MCN Energy that should keep
 the transaction accretive to earnings in the first full year of operation as a
 combined company.  MCN Energy shareholders will vote on the new terms at a
 special meeting May 15.
     *  Received clearance from the Federal Trade Commission to move forward
 with the deal and nearing completion of the Securities and Exchange
 Commission's review process.
 
     "With these developments, we now believe the merger with MCN Energy will
 be completed in June," Earley said.
     Performance within the core electric utility was comparable to first
 quarter 2000 levels, in light of softer commercial and industrial sales and
 higher purchase power prices, reflecting the increased cost of natural gas.
     "Continued strong residential sales and our ability to leverage
 opportunities within the wholesale market provided us with the needed upside
 to address changes in our marketplace," Earley said.
     DTE Energy also completed in the first quarter the recovery of stranded
 costs, as provided by the June 2000 Michigan electric industry restructuring
 legislation.  The company issued more than $1.7 billion of securitization
 bonds in March and used a portion of the proceeds to repurchase 4.5 million
 shares of the company's common stock.  The company also redeemed $636 million
 of short- and long-term debt during March.
     "The closure of securitization and completion of the MCN Energy merger
 provides our company with the resources we need to be successful in this new
 competitive environment," Earley said.
     DTE Energy is a Detroit-based diversified energy company involved in the
 development and management of energy-related businesses and services
 nationwide.  DTE Energy's principal operating subsidiary is Detroit Edison, an
 electric utility serving 2.1 million customers in Southeastern Michigan.  DTE
 Energy announced in October 1999, plans to merge with MCN Energy Group, parent
 company of Michigan Consolidated Gas Co., a natural gas utility serving 1.2
 million customers in Michigan.  The proposed company, DTE Energy, would be the
 largest energy utility in the state.  Information about DTE Energy is
 available at http://www.dteenergy.com .
     This release contains forward-looking statements within the meaning of the
 Private Securities Litigation Reform Act of 1995.  These statements are based
 upon the company's best estimates.  Actual results may differ materially.
 
                               DTE ENERGY COMPANY
                      CONSOLIDATED INCOME DATA (Unaudited)
                    (In Millions, Except Per Share Amounts)
 
                                   Three Months Ended
                                        March 31
                                   2001               2000        Percent
                                                                  Change
 
     Operating Revenues          $1,842             $1,182          55.8
 
     Operating Income              $244               $215          13.5
 
     Net Income                    $138               $117          17.9
 
     Weighted Average Number
      of Shares of Common Stock
      Outstanding                   142                145          (2.1)
 
     Earnings Per Common Share:
 
        Basic                     $0.98              $0.81          21.0
 
        Diluted                   $0.97              $0.81          19.8
 
     (1) 2000 amounts adjusted to remove the effects of the fuel clause.
 
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SOURCE DTE Energy Co.
    DETROIT, April 25 /PRNewswire/ -- DTE Energy Co. (NYSE:   DTE) today
 announced 2001 first quarter earnings of $138 million, or $0.98 per basic
 share, compared to earnings for the first quarter 2000 of $117 million, or
 $0.81 per share.
     "The first quarter was a strong one for the company as revenues continued
 to grow," said Anthony F. Earley Jr., DTE Energy chairman and chief executive
 officer.
     DTE Energy's non-regulated business revenue increased 251 percent to $817
 million, with net earnings of $27 million, or $0.19 per share, a gain of 21
 percent over 2000.
     "We continue to see a growing contribution to earnings from our non-
 regulated businesses," Earley said.  "This is consistent with our growth plan
 to achieve net income of $125 million from these businesses by year-end.  In
 line with this strategy, we sold an interest in one coke battery project
 during the quarter and finalized the purchase of six synfuel projects from MCN
 Energy Group."
     The first quarter results include two items that impact comparability.
 First quarter operating performance of $0.98 per share in 2001 would have been
 $0.07 per share higher prior to the adoption of the new accounting standard
 SFAS No. 133, relating to the use of derivatives.  This new accounting
 standard, while impacting the first quarter, is expected to have a reverse
 impact in other quarters and not impact the total year.  Additionally, the
 first quarter of 2001 reflected the suspension of the fuel clause, which
 increased first quarter 2001 earnings by $0.21 per share.
     Closure of the proposed merger with MCN Energy is another critical
 component of DTE Energy's growth strategy.  A number of key actions during the
 first quarter allowed both companies to accelerate their integration efforts
 and begin initiating the merger synergies identified.  These actions include:
     *  Negotiated a revised merger agreement with MCN Energy that should keep
 the transaction accretive to earnings in the first full year of operation as a
 combined company.  MCN Energy shareholders will vote on the new terms at a
 special meeting May 15.
     *  Received clearance from the Federal Trade Commission to move forward
 with the deal and nearing completion of the Securities and Exchange
 Commission's review process.
 
     "With these developments, we now believe the merger with MCN Energy will
 be completed in June," Earley said.
     Performance within the core electric utility was comparable to first
 quarter 2000 levels, in light of softer commercial and industrial sales and
 higher purchase power prices, reflecting the increased cost of natural gas.
     "Continued strong residential sales and our ability to leverage
 opportunities within the wholesale market provided us with the needed upside
 to address changes in our marketplace," Earley said.
     DTE Energy also completed in the first quarter the recovery of stranded
 costs, as provided by the June 2000 Michigan electric industry restructuring
 legislation.  The company issued more than $1.7 billion of securitization
 bonds in March and used a portion of the proceeds to repurchase 4.5 million
 shares of the company's common stock.  The company also redeemed $636 million
 of short- and long-term debt during March.
     "The closure of securitization and completion of the MCN Energy merger
 provides our company with the resources we need to be successful in this new
 competitive environment," Earley said.
     DTE Energy is a Detroit-based diversified energy company involved in the
 development and management of energy-related businesses and services
 nationwide.  DTE Energy's principal operating subsidiary is Detroit Edison, an
 electric utility serving 2.1 million customers in Southeastern Michigan.  DTE
 Energy announced in October 1999, plans to merge with MCN Energy Group, parent
 company of Michigan Consolidated Gas Co., a natural gas utility serving 1.2
 million customers in Michigan.  The proposed company, DTE Energy, would be the
 largest energy utility in the state.  Information about DTE Energy is
 available at http://www.dteenergy.com .
     This release contains forward-looking statements within the meaning of the
 Private Securities Litigation Reform Act of 1995.  These statements are based
 upon the company's best estimates.  Actual results may differ materially.
 
                               DTE ENERGY COMPANY
                      CONSOLIDATED INCOME DATA (Unaudited)
                    (In Millions, Except Per Share Amounts)
 
                                   Three Months Ended
                                        March 31
                                   2001               2000        Percent
                                                                  Change
 
     Operating Revenues          $1,842             $1,182          55.8
 
     Operating Income              $244               $215          13.5
 
     Net Income                    $138               $117          17.9
 
     Weighted Average Number
      of Shares of Common Stock
      Outstanding                   142                145          (2.1)
 
     Earnings Per Common Share:
 
        Basic                     $0.98              $0.81          21.0
 
        Diluted                   $0.97              $0.81          19.8
 
     (1) 2000 amounts adjusted to remove the effects of the fuel clause.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X93766537
 
 SOURCE  DTE Energy Co.