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.
More Business News
Last Update on August 03, 2015 17:19 GMT
WASHINGTON (AP) -- Consumer spending in June rose by the smallest amount in four months as shoppers cut back on purchases of cars and other big-ticket items.
The Commerce Department says consumer spending edged up 0.2 percent in June, the poorest showing since a similar increase in February.
The modest advance followed a sharp 0.7 percent rise in spending in May. The increase had been driven by heavy spending on autos. But in June, auto sales slowed.
Overall purchases of durable goods, the category that covers autos, fell 1.3 percent in June.
Personal income rose 0.4 percent for a third straight month, reflecting strong employment gains.
Economists believe steady employment gains will boost consumer spending and drive faster economic growth in the second half of this year.
DETROIT (AP) -- Summer deals and big demand for SUVs and luxury vehicles kept U.S. auto sales strong in July.
Sales of new cars and trucks were expected to rise 3 percent to nearly 1.5 million, according to car shopping site TrueCar.com.
Fiat Chrysler's U.S. sales rose 6 percent over last July, while Nissan's U.S. sales were up 8 percent. Both companies benefited from surging sales of small SUVs. Sales of Nissan's new Rogue jumped 51 percent, and Nissan says sales of its trucks and SUVs set a July record.
Other automakers will report July sales later today.
WASHINGTON (AP) -- U.S. construction spending increased in June by the smallest amount in five months as a big drop in nonresidential building activity offset a third straight increase in home building.
The Commerce Department says construction spending edged up a slight 0.1 percent in June following a 1.8 percent increase in May and a 3.8 percent rise in April. Even with the June slowdown, construction spending advanced to a seasonally adjusted annual rate of $1.06 trillion, the best pace in seven years.
Residential construction was up 0.4 percent. But nonresidential building slipped 1.3 percent in June, with the category that covers shopping centers falling 4.4 percent. Spending on government building projects was up 1.6 percent as a solid increase at the state and local levels offset a drop in federal projects.
WASHINGTON (AP) -- U.S. factories were a little less busy last month.
The Institute of Purchasing Managers' manufacturing index slipped to 52.7 last month from 53.5 in June. Economists had expected the index to remain unchanged. Any reading above 50 indicates growth.
Exports are contracting, partly because a strong dollar makes U.S. goods more expensive. Hiring slowed at U.S. factories last month, but production and new orders rose.
The Commerce Department reported last Monday that orders to U.S. factories for big-ticket goods rose sharply in June, though the gain was driven by a surge in demand for commercial aircraft -- a volatile category.
The U.S. economy is plugging along. It grew at a 2.3 percent annual pace from April through June, rebounding from a bitter winter. Unemployment fell in June to 5.3 percent, lowest in seven years.'
ATHENS, Greece (AP) -- Greece's top companies lost billions in market value in a matter of minutes today, when the stock exchange plunged upon reopening after a five-week closure and investors worried over a dramatic new drop in the economy.
The main stock index shed more than 22 percent soon after the open, as traders got their first opportunity since late June to react to the latest twists in the country's economic drama.
The index closed 16.2 percent lower, with bank shares hitting or nearing the daily trading limit of a 30 percent loss.
Evangelos Sioutis, financial analyst and head of equities at Guardian Trust says, "There's a sense of panic." He says some traders are selling stock merely to raise cash because there is so little liquidity in the Greek economy.
Markets in the rest of the world, however, were largely unaffected, a sign that investors outside Greece have now largely cut off ties with the country after years of crisis there. European shares closed higher.
SAN JUAN, Puerto Rico (AP) -- Puerto Rico's government is at risk of defaulting on at least part of its $72 billion in public debt.
Nearly 10 years into a deep economic slump, Puerto Rico is no closer to pulling out, and, in fact, is poised to plummet further. The unemployment rate is above 12 percent. Some 144,000 people left the U.S. territory between 2010 and 2013, and about a third of all people born in Puerto Rico now live in the U.S. mainland. Schools and businesses have closed amid the exodus. The population of 3.5 million is expected to drop to 3 million by 2050.
The government has tried to boost revenue by hiking the sales tax to 11.5 percent, higher than any U.S. state, and closing government offices. Its debt-burdened power utility already charges rates that on average are twice those of the mainland, and is under pressure from bondholders to raise them higher.
A $58 million bond payment due Saturday went unpaid. If defaults continue, analysts say Puerto Rico will face numerous lawsuits and increasingly limited access to markets, putting a recovery even more out of reach.
NEW YORK (AP) -- Retailers including Walmart, Sears and Amazon have agreed to keep realistic toy guns off their shelves in New York as part of a settlement with the state.
Attorney General Eric Schneiderman tells The New York Times that the retailers also have agreed to pay more than $300,000 in penalties.
Schneiderman's office found that more than 6,400 toy guns sold from 2012 to 2014 violated New York laws. New York is among a handful of states that introduced legislation in 2015 to create or amend toy gun laws.
The push to regulate toy guns has increased since a Cleveland police officer fatally shot 12-year-old Tamir Rice in November as the boy was holding a realistic airsoft gun.
New York state law prohibits the sale of black, blue, silver or aluminum toy guns. New York City requires that imitation guns be brightly colored or translucent.
NOKIA-AUTOMARKERS-MAP UNIT SALE
BERLIN (AP) -- A consortium of German automakers says it's buying Nokia Corp.'s HERE map business in a deal that values the unit at 2.8 billion euros ($3.1 billion). The deal involving Audi, BMW and Daimler secures their access to technology that could eventually be used for driverless cars.
Nokia, based in Finland, has refocused its business on producing equipment for wireless networks after selling its mobile phone handset operation to Microsoft Corp. The company says it expects to receive a little more than 2.5 billion euros from the sale, with the purchasers being compensated for HERE liabilities totaling nearly 300 million euros.
The deal is expected to close in next year's first quarter.
DISHWASHER EXPANSION DEAL
FITCHBURG, Wis. (AP) -- The kitchen appliance manufacturer Sub-Zero Group is planning a $62 million expansion south of Madison, Wisconsin.
The Wisconsin State Journal reports that the maker of Sub-Zero and Wolf appliances chose last month to expand its Fitchburg facility over a planned site in Kentucky.
The 400,000-square-foot expansion will more than double its current footprint in Fitchburg and churn out upscale dishwashers and ranges.
The new facility is slated to open in fall 2016.
At least $5 million in state and local incentives are part of the deal, including state tax credits for creating an estimated 300 new jobs and meeting wage requirements.
HOFFMAN ESTATES, Ill. (AP) -- Sears Holdings Corp. says a key sales figure fell sharply in the second quarter, dragged down especially by weakness at its namesake stores. It's at least the 10th straight quarter that the metric has declined.
The company says that sales at stores open at least a year dropped 10.6 percent for the quarter to date.
This figure is considered an important measurement of a retailer's operating performance because it excludes results from stores recently opened or closed.
At Sears stores, the metric declined 13.9 percent. It fell 6.9 percent for Kmart locations.
Sears says that soft consumer electronics sales hindered its performance. Excluding that business, sales at stores open at least a year fell 9.1 percent, with a 5.4 percent decline at Kmart stores and a 12.5 percent drop at Sears locations.
SPRINGDALE, Ark. (AP) -- Tyson Foods Inc. is reporting a fiscal third-quarter profit of 32 percent, but it's still short of expectations.
Net income for the quarter reached $343 million, or 83 cents per share. Earnings, adjusted for non-recurring gains, came to 80 cents per share.
Tyson CEO Donnie Smith says beef "under-delivered our expectations by $84 million." He says there was also an excess of beef on the market, forcing sales at lower prices, and a labor dispute at West Coast ports also disrupted business.
Tyson is also being hammered on exports with bans in some countries following a U.S. outbreak avian influenza, as well as a strong dollar.
The Human RaceCheck out videos on The Human Race here!
Side RoadsTake a ride with Brian Smith to explore the unique people and places to be found along the Sideroads of the NewsChannel 9 viewing area.
The Good LifeCelebrating the events, adventures and activities that represent "The Good Life" in the NewsChannel 9 viewing area.
Closings and DelaysThese are the latest School and Business Closings reported to NewsChannel 9. If you see errors or need to add a school or business, call 423-757-7320.
Deaf & Hard of HearingInformation provided to NewsChannel 9 by members of the Deaf and Hard of Hearing Community.
Sponsored EventsCheck Back Often for NewsChannel9 Sponsored Events!