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TVA Reports Fiscal Year-End 2013 Results
The Tennessee Valley Authority reported Monday that the public-owned utility ended fiscal 2013 with net income of $271 million on $11 billion in operating revenues despite a decline in sales, while record levels of low-cost hydroelectric generation helped offset higher fuel costs.
“TVA reported solid financial results in 2013 despite lower sales and revenues,” TVA President and CEO Bill Johnson said.
“We experienced lower demand for power during the year due to the shutdown of a major customer facility, a slow-growing economy and adoption of energy conservation by customers,” he said. “We expect to see low growth in power demand into the next decade, and we are committed to living within our means to keep rates low for our customers and the people of the Tennessee Valley.”
Sales to local power companies were up slightly in 2013 as compared with 2012, as more normal weather patterns returned in 2013, favorably impacting demand. Sales to industrial customers directly served by TVA were off 15 percent from the prior year, primarily due to the U.S. Enrichment Corp.’s closure of its uranium enrichment facility near Paducah, Ky. Lower sales to directly served industrial customers were offset by higher off-system sales resulting from excess generation, TVA said Monday in its 2013 annual financial report to the U.S. Securities and Exchange Commission.
Total revenues declined 2 percent in 2013 compared with the prior year. The decrease was driven by a decline in base revenue as local power companies implemented new TVA wholesale rate structures, and lower fuel cost recovery revenues as a result of lower electricity sales.
Lower-cost nuclear generation was down 6 percent in 2013 versus 2012 due to four nuclear refueling outages and a steam generator replacement project, compared with two nuclear refueling outages the previous year. As a result, fuel expense increased $140 million in 2013 compared with 2012.
Record levels of rainfall in 2013 produced 42 percent more low-cost hydroelectric generation compared with 2012, which helped to partially offset higher cost generation resources.
Operating and maintenance expenses were reduced by $82 million in 2013 compared with 2012. The decrease was driven by fewer outage costs and lower scheduled maintenance for coal-fired units due to retirement or idling of less efficient coal units, and decreased costs related to post-employment benefits. Offsetting the decreases were expenses related to the four nuclear outages and other projects in 2013.
“Our company-wide efforts to enhance productivity and reduce costs will keep TVA competitive as we remain committed to fulfilling TVA’s mission,” Chief Financial Officer John Thomas said. “The actions our employees took throughout the year allowed us to end 2013 with a positive position and remain financially healthy.”
TVA reported net income of $271 million on $11 billion in operating revenues for fiscal 2013, compared with net income of $60 million on $11.2 billion in revenues last year.
TVA executive management will host a fiscal year-end 2013 financial conference call at 9:30 a.m. EST on Monday, Nov. 18, 2013. The conference call can be accessed on TVA’s website via webcast at http://www.tva.com on the Investor Relations homepage. For quick access to the live conference call, please pre-register now by going to TVA’s website before the scheduled start time and follow the instructions provided. Once pre-registered, the dial-in number will be provided via an email. If you are unable to pre-register, you may access the conference call by dialing toll free (877) 270-2148 in the United States or in Canada, or (412) 902-6510 outside the United States. A replay will be available one hour after the end of the conference call until 9:00 p.m. EST, November 26, 2013, by calling toll free (877) 344-7529 in the United States or (412) 317-0088 outside the United States and using the conference number 10034053. A webcast replay and transcript will also be available for one year on TVA’s website at http://www.tva.com/finance.
TVA’s annual report on Form 10-K provides additional financial, operational and descriptive information, including audited financial statements for the year-ended September 30, 2013, and is available to investors and the public. TVA SEC reports are also available without charge on TVA’s website at http://www.tva.com/finance or on the SEC’s website at http://www.sec.gov or by calling TVA toll free at (888) 882-4975.
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Last Update on March 10, 2014 17:07 GMT
WASHINGTON (AP) -- President Barack Obama's top economists say the nation is on track to make economic progress over the next two years, but say it would do even better if Congress would enact the additional spending he proposed in his most recent budget. A divided Congress in an election year is not likely to heed that call.
In their annual report to the president, the Council of Economic Advisers says the nation's economy would grow by 3.3 percent in 2014 and 3.5 percent in 2015. It adds that unemployment would drop to 6.4 percent in 2015 and 6 percent in 2016. February's unemployment rate was 6.7 percent.
That forecast assumes that Congress would approve $56 billion in spending that is above the limits set in a bipartisan budget agreement earlier this year.
DUBLIN (AP) -- Yes, they have more bananas.
Fruit supply companies Chiquita of the United States and Fyffes of Ireland said Monday they had agreed to merge to create the world's biggest banana supplier.
The all-shares agreement means the two companies will become ChiquitaFyffes PLC, be traded on the New York Stock Exchange and be headquartered in Dublin, a more tax-efficient corporate base.
The companies said the deal, which requires shareholder and regulatory approval in Ireland and the United States, would generate $40 million in pre-tax savings through more efficient operations.
Current Fyffes and Chiquita shareholders each would own half of a combined operation expected to generate $4.6 billion in annual sales.
The two companies said the merger would create a banana behemoth that ships more than 160 million crates worldwide, about a quarter more than either of their main rivals, Dole and Del Monte. ChiquitaFyffes also would become the world's No. 3 distributor of pineapples and melons.
OAK BROOK, Ill. (AP) -- McDonald's says a key sales metric dropped 1.4 percent in the U.S. in February, yet again hurt by tough winter weather.
Global sales at locations open at least 13 months dipped 0.3 percent.
In the Middle East, Africa and the Asia Pacific region, sales declined 2.6 percent mostly on softness in Japan as well as weakness in Australia and a shift in the timing of the Chinese New Year.
Europe was a bright spot, with sales up 0.6 percent on a strong performance in the U.K. and growth in France.
McDonald's Corp., the world's largest hamburger chain, has been dealing with competition from rivals like Burger King and Wendy's, who also have value menus and special offers.
It is also trying to adapt to shifting eating habits by introducing items that are positioned as healthy or fresh.
NEW YORK (AP) -- Sbarro says it's filing for Chapter 11 reorganization, marking the struggling pizza chain's second trip through bankruptcy court in less than three years.
The filing comes shortly after it closed 155 of its U.S. locations. It still has more than 800 locations worldwide.
Sbarro had also filed for bankruptcy protection in April 2011 and emerged a few months later, saying that it significantly cut its debt and received a capital infusion. A new CEO then led a push to revitalize the chain's image by touting new recipes and ovens. But the efforts apparently didn't take hold.
Sbarro, based in Melville, N.Y., says its strategy of store closings and balance sheet restructuring will improve its profitability and reduce outstanding debt by more than 80 percent.
LITTLE ROCK, Ark. (AP) -- Alabama-based Peco Foods says it will build a new poultry plant, hatchery and feed mill in northeast Arkansas in a $165 million operation expected to create 1,000 jobs in two rural counties.
Gov. Mike Beebe announced the development Monday alongside Peco Foods President, CEO Mark Hickman and other local and regional leaders. The company plans to build in Randolph and Clay counties with the first phase of groundbreaking planned for next month.
Peco Foods is receiving more than $4.5 million in state and local incentives with additional tax breaks planned.
Hickman says the company picked Arkansas because of its "outstanding workforce," noting that its existing poultry plant in Batesville has been a success.
Based in Tuscaloosa, Ala., Peco Foods is the eighth-largest poultry producer in the country.
DALLAS (AP) -- American Airlines is getting more than $425 million from selling takeoff and landing slots at New York's LaGuardia Airport and Reagan National Airport outside Washington.
That price was disclosed Monday in comments filed in federal court in Washington by the U.S. Department of Justice.
The department says the value of those slots shows that it drove a hard bargain last year when it settled its antitrust lawsuit against the merger of American and US Airways. The airlines agreed to give up slots at LaGuardia and Reagan and gates at five other big airports.
The Justice Department filed its response to public comments on the settlement. Consumer groups, lawmakers, the Detroit airport and Delta Air Lines lodged complaints about the settlement.
NEW YORK (AP) -- American Airlines and JetBlue Airways Corp. are ending an agreement that allowed travelers to add connections to their itinerary on each other's aircraft.
The termination of the interline sales agreement is effective Monday.
The companies also said that they are ending a reciprocal frequent flyer program accrual agreement. Travelers won't earn miles or points when traveling on eligible routes run by the other airline beginning April 1.
All American AAdvantage miles or JetBlue TrueBlue points already accrued through the partnership will be credited to customers' accounts and are not affected.
Last month Delta announced changes to its frequent flier program. Starting next year, Delta customers will earn miles based on how much they spend, not just miles flown.
American Airlines Group Inc. is the holding company for American Airlines and US Airways.
WASHINGTON (AP) -- The Supreme Court has sided with a Wyoming property owner in a dispute over a bicycle trail that follows the route of an abandoned railroad. The decision could force the government to pay hundreds of millions of dollars to compensate landowners.
The justices ruled 8-1 Monday that property owner Marvin Brandt remains the owner of a 200-foot-wide trail that crosses his 83-acre parcel in southern Wyoming's Medicine Bow National Forest. The trail once was the path of a railroad and is among thousands of miles of abandoned railroads that have been converted to recreational trails.
Chief Justice John Roberts said the government was wrong to assert that it owns the trail.
The government says it faces compensation claims involving 10,000 properties in 30 states, possibly topping $100 million.
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