FPL Group Reports Record Net Income in First Quarter, Excluding Merger Related Expenses

Apr 20, 2001, 01:00 ET from FPL Group, Inc.

    JUNO BEACH, Fla., April 20 /PRNewswire Interactive News Release/ --
 FPL Group, Inc. (NYSE:   FPL) today reported record first quarter net income of
 $129 million compared with $121 million in the first quarter of 2000.
 Earnings per share rose to
 76 cents from 71 cents a year ago, a seven percent increase.
     The results are before a $19 million, 11 cents a share, after-tax expense
 related to a proposed merger with Entergy Corporation, which was terminated
 recently.
     "FPL Group had a strong first quarter, and each of our businesses should
 continue to experience solid growth. We are targeting overall earnings per
 share growth at FPL Group of seven percent in 2001," said James L. Broadhead,
 chairman and chief executive officer.
     "Strong customer growth and increased usage of electricity, due to
 sustained cold weather in the quarter, contributed to higher revenues and
 earnings for FPL Group's primary subsidiary Florida Power & Light Company,"
 said Mr. Broadhead.  "FPL Energy, our independent power producer subsidiary,
 also reported healthy earnings growth as a result of additions and
 enhancements to its power plant portfolio in 2000, and FPL FiberNet provided a
 modest contribution to earnings as it continued to expand in Florida."
 
     Florida Power & Light
     Florida Power & Light Company's net income increased to $113 million from
 $106 million, a 6.6 percent increase, while earnings per share rose to
 67 cents from 62 cents a year ago, an 8.1 percent increase.
     FPL customer accounts increased to more than 3.9 million, up 2.4 percent.
 Sustained cold weather during January caused electricity usage per customer to
 increase by 5.7 percent.  January had more days with the average temperature
 below 66 degrees -- the point at which many customers turn on their heat --
 than in any month since 1981.  During the height of the cold spell in early
 January, the company experienced its all time peak demand for electricity of
 18,219 megawatts.
     Soaring oil and gas prices increased FPL's cost for fuel to $741 million
 compared with $479 million in the first quarter a year ago.  Fuel costs are
 passed directly to customers with no profit derived by FPL.  "We expect to
 provide a refund of approximately $100 million to our customers beginning in
 June as a result of the higher revenues at FPL," said Mr. Broadhead.  The
 revenue refund is part of the utility's agreement with Public Counsel and
 approved by the Florida Public Service Commission, which provides sharing with
 customers of revenues that exceed a certain threshold.  The refunds will begin
 to appear on customer's bills in June and are expected to average
 approximately $17 per residential customer.  The company accrues for the
 expected annual refund on a monthly basis.
 
     FPL Energy
     FPL Energy's net income rose to $19 million, or 11 cents a share, compared
 with $15 million, or nine cents a share, in the first quarter of 2000.  In the
 quarter, FPL Energy had plants with approximately 1,000 more megawatts in
 operation than the prior year quarter.  The higher earnings from this larger
 power plant portfolio were somewhat offset by expenses associated with
 expanded project development activities.
     "We expect to grow FPL Energy's portfolio to more than 9,500 megawatts by
 the end of 2003," said Mr. Broadhead.  "We already have announced specific
 projects totaling more than 5,300 megawatts, and we have a strong development
 pipeline of more than 10,000 megawatts that should fuel solid growth of this
 business."
 
     Since the beginning of 2001, FPL Energy announced:
     * It will build, own and operate the world's largest wind energy project.
       The wind farm will be located along the Washington-Oregon border and
       produce 300 megawatts of clean, renewable electricity.  It is scheduled
       to be largely complete by the end of this year.
 
     * Construction has begun on a 535-megawatt natural gas-fired,
       combined-cycle power plant in Bastrop County, located near the
       high-growth area of Austin, TX.  It will be jointly owned by FPL Energy
       and Coastal Power Company and operated by FPL Energy.  It should be
       operational by the second quarter of 2002.
 
     * The first units of a 25.5-megawatt wind farm in Iowa County, Wisconsin
       are generating power, and the others should be fully operational by the
       end of the second quarter.
 
     * It is building a 278-megawatt wind-powered electric generating facility
       located on King Mountain in Upton County, TX, near the Midland-Odessa
       area.  The wind farm is expected to be in operation by the end of the
       year.
 
     * It will build, own and operate a 668-megawatt, natural gas-fired,
       simple-cycle power plant in Calhoun County in northeastern Alabama. The
       company expects to begin operation of the plant in the summer of 2003.
 
     * It will build, own and operate a 1,789-megawatt, natural gas-fired,
       combined-cycle plant in the Dallas-Ft. Worth area, one of the largest
       independent generation projects in the state.  It will own 95% of the
       Forney, TX plant, which is expected to begin commercial operation in the
       second quarter of 2003.
 
     Corporate and Other
     Corporate expenses were up compared to prior year quarter due largely to
 higher interest expense.  These higher expenses were somewhat offset by
 earnings from FPL FiberNet.  The subsidiary, a leading provider of fiber-optic
 network solutions in Florida, completed metropolitan fiber-optic networks in
 Orlando, Fort Lauderdale and Tampa in the first quarter.  It plans to complete
 networks in West Palm Beach, Boca Raton, Jacksonville and St. Petersburg in
 the next 60 to 90 days.  By year-end, the company will have more than 2,500
 route-miles or nearly 350,000 fiber miles in Florida.  The company recently
 announced an agreement to lease a portion of its network in Florida to
 BellSouth.
 
     Other Highlights
     * The board of directors increased the quarterly common stock dividend
       from 54 cents to 56 cents a share.
 
     * FPL projected a 20 percent generating reserve margin for the summer,
       thereby assuring its customers that there would be a sufficient supply
       of electricity this summer.  The projections were part of a report to
       the Florida Public Service Commission outlining new FPL power plants
       entering service this year or planned for the future.
 
     * The Federal Energy Regulatory Commission voted unanimously to approve a
       proposal from the three major electric utilities -- Florida Power &
       Light Company, Florida Power Corp., and Tampa Electric Company -- to
       move ahead with plans to create a for-profit transmission company called
       GridFlorida.
 
     (A webcast of FPL Group's first quarter earnings conference call,
 scheduled at 9 a.m. EDT on Friday April 20, 2001, is available on FPL Group's
 Web site, www.fplgroup.com, by following the link provided.)
 
     FPL Group, with annual revenues of more than $7 billion, is one of the
 nation's largest providers of electricity-related services.  Its principal
 subsidiary, Florida Power & Light Company, serves approximately 3.9 million
 customer accounts in Florida.  FPL Energy, LLC, FPL Group's U.S.
 energy-generating subsidiary, is a leader in producing electricity from clean
 and renewable fuels.  Additional information is available on the Internet at
 www.fplgroup.com, www.fpl.com and www.fplenergy.com.
 
 
                                FPL Group, Inc.
                               Financial Summary
                    (in millions, except per share amounts)
                                                  Three Months Ended March 31,
                                                         2001           2000
     FPL kilowatt-hour sales                           21,341         19,691
     Operating Revenues                                $1,941         $1,468
 
     Operating Expenses
       Fuel, purchased power and interchange              951            542
       Other operations and maintenance                   310            285
       Depreciation and amortization                      240            259
       Taxes other than income taxes                      169            145
         Total operating expenses                       1,670          1,231
 
     Other Income (Deductions)
       Interest charges and preferred stock dividends     (89)           (66)
       Other - net                                         15              7
         Total other deductions - net                     (74)           (59)
 
     Income Taxes                                          68             57
 
     Net Income Excluding After-Tax Effect of Merger
      - Related Expenses                                  129            121
       Merger-related expenses                            (19)            --
     Net Income                                          $110           $121
 
     Earnings per share (basic and assuming dilution)   $0.65          $0.71
     Weighted-average shares outstanding
      (assuming dilution)                                 169            171
 
 
                                                 Twelve Months Ended March 31,
                                                         2001           2000
 
     FPL kilowatt-hour sales                           93,620         88,999
 
     Operating Revenues                                $7,555         $6,493
 
     Operating Expenses
       Fuel, purchased power and interchange            3,278          2,401
 
       Other operations and maintenance                 1,282          1,264
       Depreciation and amortization                    1,013          1,019
       Taxes other than income taxes                      641            616
         Total operating expenses                       6,214          5,300
 
     Other Income (Deductions)
       Interest charges and preferred stock dividends    (316)          (252)
       Other - net                                        101             79
         Total other deductions - net                    (215)          (173)
 
     Income Taxes                                         372            331
 
     Net Income Excluding After-Tax Effect of Merger
      - Related Expenses and Nonrecurring Items           754            689
       Merger-related expenses                            (60)            --
       Redemption of interest in cable
        limited partnership                                --             66
       Impairment loss on Maine assets                     --           (104)
       Litigation settlement                               --            (42)
     Net Income                                          $694           $609
 
     Earnings per share (basic and assuming dilution)   $4.09          $3.56
     Weighted-average shares outstanding
      (assuming dilution)                                 170            171
 
 
                                FPL Group, Inc.
                           Earnings Per Share Summary
 
                                                  Three Months Ended March 31,
                                                         2001           2000
     Earnings Per Share
       Florida Power & Light Company                    $0.67          $0.62
       FPL Energy, LLC                                   0.11           0.09
       Corporate and other                              (0.02)            --
         Subtotal                                        0.76           0.71
       Merger-related expenses (1)                      (0.11)            --
       Total                                              $0.65          $0.71
 
 
                                                 Twelve Months Ended March 31,
                                                         2001           2000
     Earnings Per Share
       Florida Power & Light Company                    $3.84          $3.62
       FPL Energy, LLC                                   0.52           0.37
       Corporate and other                               0.08           0.04
         Subtotal                                        4.44           4.03
       Merger-related and nonrecurring items:
       Merger-related expenses (2)                      (0.35)            --
       Redemption of interest in cable limited
        partnership - Corporate and Other                  --           0.39
       Impairment loss on Maine assets - FPL Energy        --          (0.61)
       Litigation settlement - FPL                         --          (0.25)
         Subtotal                                       (0.35)         (0.47)
     Total                                              $4.09          $3.56
 
 
     (1) FPL $(0.10) and Corporate and Other $(0.01).
     (2) FPL $(0.32); FPL Energy $(0.01) and Corporate and Other $(0.02).
 
 
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SOURCE FPL Group, Inc.
    JUNO BEACH, Fla., April 20 /PRNewswire Interactive News Release/ --
 FPL Group, Inc. (NYSE:   FPL) today reported record first quarter net income of
 $129 million compared with $121 million in the first quarter of 2000.
 Earnings per share rose to
 76 cents from 71 cents a year ago, a seven percent increase.
     The results are before a $19 million, 11 cents a share, after-tax expense
 related to a proposed merger with Entergy Corporation, which was terminated
 recently.
     "FPL Group had a strong first quarter, and each of our businesses should
 continue to experience solid growth. We are targeting overall earnings per
 share growth at FPL Group of seven percent in 2001," said James L. Broadhead,
 chairman and chief executive officer.
     "Strong customer growth and increased usage of electricity, due to
 sustained cold weather in the quarter, contributed to higher revenues and
 earnings for FPL Group's primary subsidiary Florida Power & Light Company,"
 said Mr. Broadhead.  "FPL Energy, our independent power producer subsidiary,
 also reported healthy earnings growth as a result of additions and
 enhancements to its power plant portfolio in 2000, and FPL FiberNet provided a
 modest contribution to earnings as it continued to expand in Florida."
 
     Florida Power & Light
     Florida Power & Light Company's net income increased to $113 million from
 $106 million, a 6.6 percent increase, while earnings per share rose to
 67 cents from 62 cents a year ago, an 8.1 percent increase.
     FPL customer accounts increased to more than 3.9 million, up 2.4 percent.
 Sustained cold weather during January caused electricity usage per customer to
 increase by 5.7 percent.  January had more days with the average temperature
 below 66 degrees -- the point at which many customers turn on their heat --
 than in any month since 1981.  During the height of the cold spell in early
 January, the company experienced its all time peak demand for electricity of
 18,219 megawatts.
     Soaring oil and gas prices increased FPL's cost for fuel to $741 million
 compared with $479 million in the first quarter a year ago.  Fuel costs are
 passed directly to customers with no profit derived by FPL.  "We expect to
 provide a refund of approximately $100 million to our customers beginning in
 June as a result of the higher revenues at FPL," said Mr. Broadhead.  The
 revenue refund is part of the utility's agreement with Public Counsel and
 approved by the Florida Public Service Commission, which provides sharing with
 customers of revenues that exceed a certain threshold.  The refunds will begin
 to appear on customer's bills in June and are expected to average
 approximately $17 per residential customer.  The company accrues for the
 expected annual refund on a monthly basis.
 
     FPL Energy
     FPL Energy's net income rose to $19 million, or 11 cents a share, compared
 with $15 million, or nine cents a share, in the first quarter of 2000.  In the
 quarter, FPL Energy had plants with approximately 1,000 more megawatts in
 operation than the prior year quarter.  The higher earnings from this larger
 power plant portfolio were somewhat offset by expenses associated with
 expanded project development activities.
     "We expect to grow FPL Energy's portfolio to more than 9,500 megawatts by
 the end of 2003," said Mr. Broadhead.  "We already have announced specific
 projects totaling more than 5,300 megawatts, and we have a strong development
 pipeline of more than 10,000 megawatts that should fuel solid growth of this
 business."
 
     Since the beginning of 2001, FPL Energy announced:
     * It will build, own and operate the world's largest wind energy project.
       The wind farm will be located along the Washington-Oregon border and
       produce 300 megawatts of clean, renewable electricity.  It is scheduled
       to be largely complete by the end of this year.
 
     * Construction has begun on a 535-megawatt natural gas-fired,
       combined-cycle power plant in Bastrop County, located near the
       high-growth area of Austin, TX.  It will be jointly owned by FPL Energy
       and Coastal Power Company and operated by FPL Energy.  It should be
       operational by the second quarter of 2002.
 
     * The first units of a 25.5-megawatt wind farm in Iowa County, Wisconsin
       are generating power, and the others should be fully operational by the
       end of the second quarter.
 
     * It is building a 278-megawatt wind-powered electric generating facility
       located on King Mountain in Upton County, TX, near the Midland-Odessa
       area.  The wind farm is expected to be in operation by the end of the
       year.
 
     * It will build, own and operate a 668-megawatt, natural gas-fired,
       simple-cycle power plant in Calhoun County in northeastern Alabama. The
       company expects to begin operation of the plant in the summer of 2003.
 
     * It will build, own and operate a 1,789-megawatt, natural gas-fired,
       combined-cycle plant in the Dallas-Ft. Worth area, one of the largest
       independent generation projects in the state.  It will own 95% of the
       Forney, TX plant, which is expected to begin commercial operation in the
       second quarter of 2003.
 
     Corporate and Other
     Corporate expenses were up compared to prior year quarter due largely to
 higher interest expense.  These higher expenses were somewhat offset by
 earnings from FPL FiberNet.  The subsidiary, a leading provider of fiber-optic
 network solutions in Florida, completed metropolitan fiber-optic networks in
 Orlando, Fort Lauderdale and Tampa in the first quarter.  It plans to complete
 networks in West Palm Beach, Boca Raton, Jacksonville and St. Petersburg in
 the next 60 to 90 days.  By year-end, the company will have more than 2,500
 route-miles or nearly 350,000 fiber miles in Florida.  The company recently
 announced an agreement to lease a portion of its network in Florida to
 BellSouth.
 
     Other Highlights
     * The board of directors increased the quarterly common stock dividend
       from 54 cents to 56 cents a share.
 
     * FPL projected a 20 percent generating reserve margin for the summer,
       thereby assuring its customers that there would be a sufficient supply
       of electricity this summer.  The projections were part of a report to
       the Florida Public Service Commission outlining new FPL power plants
       entering service this year or planned for the future.
 
     * The Federal Energy Regulatory Commission voted unanimously to approve a
       proposal from the three major electric utilities -- Florida Power &
       Light Company, Florida Power Corp., and Tampa Electric Company -- to
       move ahead with plans to create a for-profit transmission company called
       GridFlorida.
 
     (A webcast of FPL Group's first quarter earnings conference call,
 scheduled at 9 a.m. EDT on Friday April 20, 2001, is available on FPL Group's
 Web site, www.fplgroup.com, by following the link provided.)
 
     FPL Group, with annual revenues of more than $7 billion, is one of the
 nation's largest providers of electricity-related services.  Its principal
 subsidiary, Florida Power & Light Company, serves approximately 3.9 million
 customer accounts in Florida.  FPL Energy, LLC, FPL Group's U.S.
 energy-generating subsidiary, is a leader in producing electricity from clean
 and renewable fuels.  Additional information is available on the Internet at
 www.fplgroup.com, www.fpl.com and www.fplenergy.com.
 
 
                                FPL Group, Inc.
                               Financial Summary
                    (in millions, except per share amounts)
                                                  Three Months Ended March 31,
                                                         2001           2000
     FPL kilowatt-hour sales                           21,341         19,691
     Operating Revenues                                $1,941         $1,468
 
     Operating Expenses
       Fuel, purchased power and interchange              951            542
       Other operations and maintenance                   310            285
       Depreciation and amortization                      240            259
       Taxes other than income taxes                      169            145
         Total operating expenses                       1,670          1,231
 
     Other Income (Deductions)
       Interest charges and preferred stock dividends     (89)           (66)
       Other - net                                         15              7
         Total other deductions - net                     (74)           (59)
 
     Income Taxes                                          68             57
 
     Net Income Excluding After-Tax Effect of Merger
      - Related Expenses                                  129            121
       Merger-related expenses                            (19)            --
     Net Income                                          $110           $121
 
     Earnings per share (basic and assuming dilution)   $0.65          $0.71
     Weighted-average shares outstanding
      (assuming dilution)                                 169            171
 
 
                                                 Twelve Months Ended March 31,
                                                         2001           2000
 
     FPL kilowatt-hour sales                           93,620         88,999
 
     Operating Revenues                                $7,555         $6,493
 
     Operating Expenses
       Fuel, purchased power and interchange            3,278          2,401
 
       Other operations and maintenance                 1,282          1,264
       Depreciation and amortization                    1,013          1,019
       Taxes other than income taxes                      641            616
         Total operating expenses                       6,214          5,300
 
     Other Income (Deductions)
       Interest charges and preferred stock dividends    (316)          (252)
       Other - net                                        101             79
         Total other deductions - net                    (215)          (173)
 
     Income Taxes                                         372            331
 
     Net Income Excluding After-Tax Effect of Merger
      - Related Expenses and Nonrecurring Items           754            689
       Merger-related expenses                            (60)            --
       Redemption of interest in cable
        limited partnership                                --             66
       Impairment loss on Maine assets                     --           (104)
       Litigation settlement                               --            (42)
     Net Income                                          $694           $609
 
     Earnings per share (basic and assuming dilution)   $4.09          $3.56
     Weighted-average shares outstanding
      (assuming dilution)                                 170            171
 
 
                                FPL Group, Inc.
                           Earnings Per Share Summary
 
                                                  Three Months Ended March 31,
                                                         2001           2000
     Earnings Per Share
       Florida Power & Light Company                    $0.67          $0.62
       FPL Energy, LLC                                   0.11           0.09
       Corporate and other                              (0.02)            --
         Subtotal                                        0.76           0.71
       Merger-related expenses (1)                      (0.11)            --
       Total                                              $0.65          $0.71
 
 
                                                 Twelve Months Ended March 31,
                                                         2001           2000
     Earnings Per Share
       Florida Power & Light Company                    $3.84          $3.62
       FPL Energy, LLC                                   0.52           0.37
       Corporate and other                               0.08           0.04
         Subtotal                                        4.44           4.03
       Merger-related and nonrecurring items:
       Merger-related expenses (2)                      (0.35)            --
       Redemption of interest in cable limited
        partnership - Corporate and Other                  --           0.39
       Impairment loss on Maine assets - FPL Energy        --          (0.61)
       Litigation settlement - FPL                         --          (0.25)
         Subtotal                                       (0.35)         (0.47)
     Total                                              $4.09          $3.56
 
 
     (1) FPL $(0.10) and Corporate and Other $(0.01).
     (2) FPL $(0.32); FPL Energy $(0.01) and Corporate and Other $(0.02).
 
 
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                http://tbutton.prnewswire.com/prn/11690X77670812
 
 SOURCE  FPL Group, Inc.

RELATED LINKS

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