TVA Reports Sales Flat in First Fiscal Quarter 2013
The Tennessee Valley Authority reported Tuesday that electricity sales were relatively flat in the first quarter of fiscal year 2013, total revenues were consistent with the prior year and net income was down.
“TVA’s total operating revenues remain on plan,” new President and CEO Bill Johnson said. “We continue to drive performance and process improvements in order to provide cleaner and low-cost energy to our customers.”
Higher off-system sales as a result of excess generation and closer to normal temperatures for the period, compared with even warmer weather a year ago, contributed to a slight 0.2 percent increase in total electricity sales, TVA said in its quarterly filing to the U.S. Securities and Exchange Commission for the three months ended Dec. 31, 2012.
Sales to TVA’s municipal and cooperative power distributors were up primarily due to the weather. Offsetting these increases were lower sales to directly served industrial customers.
Operating revenues were $11 million higher compared with last year. The increase was primarily due to an $82 million increase in fuel cost recovery and a $14 million increase in other revenue sources, partially offset by an $85 million decrease in base revenue. TVA is transitioning to time-of-use rate structures with its customers, which may result in reduced overall effective base rates in certain periods and higher rates in others.
“As expected, the change in rate products is better aligning rates with the cost of service. We are seeing reduced base rates during transition months and winter months, and expect to see higher revenues during the summer months,” Chief Financial Officer John Thomas said. “However, cost-savings actions we took last year have positioned TVA to remain financially healthy throughout the year.”
Total operating expenses were 4 percent higher than the same period last year, driven primarily by a 24 percent increase in fuel expenses. Offsetting the higher fuel expense was a 23 percent decline in purchased power expenses, as TVA used more of its own generation sources to meet demand. Operating and maintenance expense increased by $39 million, or 4 percent, in the first quarter of 2013. This increase was primarily driven by a $111 million increase for nuclear refueling outages in the first quarter, compared with no refueling outages in the same period last year. Partially offsetting this increase was a $49 million decline in coal-fired operation outage and project expenses.
TVA reported a net loss of $245 million on operating revenues of $2.58 billion in the first quarter of 2013, compared with a net loss of $173 million on revenues of $2.57 billion in the same period last year.
TVA executive management will host a first quarter fiscal year 2013 financial conference call at 9:30 a.m. EST on Tuesday, Feb. 5, 2013. The conference call can be accessed on TVA’s website via webcast at http://www.tva.com/finance. 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 5:00 p.m. EST, Feb. 12, 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 10023947. A webcast replay and transcript will also be available for one year on TVA’s website at http://www.tva.com/finance.
TVA’s quarterly report on Form 10-Q provides additional financial, operational and descriptive information, including unaudited financial statements for the quarter ended Dec. 31, 2012, 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.
Wednesday, February 6 2013, 11:58 AM EST
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Last Update on May 01, 2015 18:19 GMT
WASHINGTON (AP) -- U.S. construction fell in March as an increase in nonresidential construction was offset by declines in home building and government projects.
The Commerce Department says construction spending dropped 0.6 percent in March after being flat in February. Construction activity has fallen or shown no gain in four of the past five months, a sign of the economic toll from a severe winter.
For March, housing construction dropped 1.6. Both single-family construction and apartment construction contracted. Spending on government projects fell 1.5 percent, the third straight decline.
The only good news in March is a 1 percent rise in nonresidential construction, with gains in the building of hotels and office buildings.
Economists are forecasting a rebound in coming months as warmer weather boosts activity.
WASHINGTON (AP) -- U.S. factories expanded in April at the same pace as in March, but manufacturers are starting to curtail hiring in a possible sign of weakness.
The Institute for Supply Management, a trade group of purchasing managers, says its manufacturing index was unchanged at 51.5.
The index had dropped in the prior five months. Still, any reading above 50 signals expansion.
U.S. manufacturers have faced a drag in recent months from falling oil prices and a rising dollar.
New orders and productivity improved in April, but the hiring component of the index slipped below 50 to 48.3, suggesting the possibility of layoffs and less hiring.
WASHINGTON (AP) -- Optimism about the job market lifted U.S. consumer sentiment in April to its second-highest level since 2007.
The University of Michigan's sentiment index rose to 95.9 from 93 in March. Only January's reading of 98.1 has been higher since 2007, the year the Great Recession began. Over the past five months, sentiment has been, on average, at its highest level since 2004.
Richard Curtin, chief economist of the Michigan survey, attributed the April increase to optimism over consistently low inflation and low interest rates and improving prospects for jobs and incomes.
The index found that consumers expect interest rates to rise from current historically low levels but only modestly. And they expect any economic damage from higher rates to be offset by the benefits of more jobs and incomes.
UNDATED (AP) -- Demand for small and midsize SUVs is driving up auto sales.
General Motors, Ford, Toyota, Fiat Chrysler and Nissan all reported U.S. sales gains in April as buyers flocked to crossover SUVS that handle like cars and sit up higher. But the gains came at the expense of small and midsize cars.
General Motors sales rose 5.9 percent, with sales of the Chevrolet Equinox midsize SUV soaring 42 percent.
Ford had its best April in nine years, gaining 5 percent. Sales of the revamped Ford Edge midsize SUV were up 78 percent from a year ago.
A 20 percent increase in Jeep sales helped push Fiat Chrysler's U.S. sales up about 6 percent.
Toyota sales rose just 1.8 percent but the Japanese automaker saw record April sales of the RAV4 small SUV and Highlander midsize SUV.
At Nissan, sales were up 5.7 percent, as sales of the Nissan Rogue SUV rose 45 percent.
Volkswagen, which lacks strong SUVs, saw sales fall about 3 percent.
DETROIT (AP) -- Under pressure from U.S. safety regulators, Ford is expanding a recall of small and midsize cars to fix door latches that may not stay closed.
The recall now covers almost 546,000 Ford Fusions and Lincoln MKZs from the 2013 and 2014 model years, and Ford Fiestas from 2011 to 2014.
Ford says a broken spring part can stop the doors from latching properly. The doors also can unlatch while the cars are in motion, increasing the risk of injury.
Ford reported two minor injuries from unlatched doors bouncing into people when they tried to close them. There also was one crash when a door opened and hit another vehicle in a parking lot.
Dealers will replace all four door latches for free.
WOONSOCKET, R.I. (AP) -- CVS Health's first-quarter earnings, fueled by specialty drug claims, climbed 8 percent and easily topped Wall Street expectations.
The Woonsocket, Rhode Island, company said Friday that revenue from its pharmacy benefits management business jumped 18 percent to nearly $23 billion. Driving sales were pricey specialty drugs, which are complex medicines that can represent treatment breakthroughs but often at a much higher cost than other drugs. Those sales helped offset slower growth from the company's drugstore segment, where revenue climbed 3 percent.
Pharmacy benefits managers help negotiate the prices that customers pay for prescription drugs. They are seen as a key component in the push to contain soaring costs from specialty drugs.
Overall, CVS Health earned $1.22 billion, up from $1.13 billion in last year's quarter. Earnings in the most recent quarter, adjusted for one-time gains and costs, were $1.14 per share. That was better than the per-share earnings of $1.08 that Wall Street had expected, according to a survey by Zacks Investment Research.
YUM BRANDS-THIRD POINT STAKE
NEW YORK (AP) -- Shares of the parent company of KFC, Taco Bell and Pizza Hut are soaring after a prominent investor said he's taken a stake in the company thinks it could soon recover from years of trouble in China.
The letter from Daniel Loeb's Third Point hedge fund to investors drove Yum shares to an all-time high of $90.73 early Friday. The stock settled down slightly and was up $3.58, or 4.2 percent, to $89.56 in morning trading.
Third-Point did not disclose specifics on its stake in the company.
Louisville, Kentucky-based Yum gets much of its revenue from China, where it is still recovering after a TV report allegedly showed one of its suppliers using expired meat. A bird-flu outbreak and competition have also hampered the company's efforts in China.
WASHINGTON (AP) -- A federal appeals court has overturned a federal rule that exempted backup generators from air pollution controls for up to 100 hours per year.
The U.S. Court of Appeals for the District of Columbia Circuit ruled Friday that the Environmental Protection Agency failed to justify the exemption for generators that run on air-polluting diesel fuel and typically provide power during emergencies.
The rule was challenged by Delaware officials along with several environmental advocacy groups and power suppliers. They argued that the rule was encouraging office buildings, companies and other large consumers to use more power from backup generators in non-emergency situations, displacing cleaner power.
The appeals court agreed, saying the EPA did not respond to concerns that the rule undermined the reliability of the power grid and increased pollution.
OIL TRAIN RULES
WASHINGTON (AP) -- New safety rules are coming for oil trains to reduce the risk of fiery crashes. The requirements by U.S. and Canadian officials include stronger tank cars.
The rules require tank cars within 5 years to have an outer shell, a thermal lining and thicker steel walls to prevent them from rupturing in an accident.
Most oil trains also must have electronically controlled brakes by 2021 that stop all a train's cars at the same time, instead of sequentially.
The oil industry has opposed the stronger tank car design, while railroads have fought the new braking requirements. Both have billions of dollars on the line.
There've been dozens of fiery oil train crashes in recent years, including one that killed 47 people in Canada.
BAGPIPES AT THE BORDER
CONCORD, N.H. (AP) -- The U.S. Fish and Wildlife Service is hoping to hit the right notes over new rules enforcing an ivory ban that snagged a pair of teenage bagpipers at the Canadian border.
In August, Campbell Webster and Eryk Bean of New Hampshire were returning from a competition in Canada when their pipes were taken at Highgate Springs, Vermont. The reason: They contained small pieces of ivory.
The U.S. prohibits importing ivory taken after 1976. The boys' pipes were both older than that but were seized anyway.
They got their pipes back the next day, in time to fly to Scotland for the world championships.
Craig Hoover, of U.S. Fish and Wildlife, says the ivory ban will remain in place but the new rule will make accommodations for things like musical instruments.
BERLIN (AP) -- European aviation company Airbus says it is taking legal action following reports it was targeted by German and U.S. intelligence agencies.
The company, which makes civilian and military aircraft and is a fierce rival of U.S. manufacturer Boeing, said in a statement Friday it will file a criminal complaint with prosecutors in Germany against "persons unknown." That's a common procedure in Germany which requires authorities to investigate.
Germany had pledged to cooperate with lawmakers investigating claims that the country's foreign intelligence agency helped the U.S. National Security Agency eavesdrop on European officials and companies.
Germany reacted angrily two years ago to reports that the NSA spied on senior German officials. But a parliamentary panel created to probe these claims has since uncovered uncomfortable allegations about Germany's own spy agency.
MILAN (AP) -- Dozens of people are protesting the opening of Milan's Expo 2015, torching parked cars, smashing bank and store windows and clashing with riot police far from the world's fair sprawling grounds.
Protesters split off from a generally non-violent march Friday, a few hours after Italian Premier Matteo Renzi inaugurated Expo, which runs through October and features pavilions from nations large and small, rich and poor.
Police fired tear gas and unleashed water from trucks to try to scatter the violent protesters in downtown Milan. Hooded protesters tossed bottles and incendiary devices at police and journalists, set rubbish bins afire and smashed pavement. Firefighters worked to extinguish the blazes.
Some marchers' placards protested a high-speed rail line construction in northern Italy as well as Expo and other "big projects."
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