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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 October 21, 2014 17:19 GMT
WASHINGTON (AP) -- U.S. homes sold in September at their fastest clip this year, yet the housing market has yet to fully shake off a slowdown that began in the middle of 2013.
The National Association of Realtors says sales of existing homes rose 2.4 percent to a seasonally adjusted annual rate of 5.17 million. Still, the sales rate has dropped 1.7 percent over the past 12 months.
Investors have retreated from the market over the past year. Their departures are being offset by existing homeowners who are upgrading to more expensive properties or downsizing after having raised their children.
Rising prices through much of 2013, weak income growth and tighter credit standards have priced out many would-be buyers. Median home prices rose 5.6 percent over the past 12 months to $209,700.
NEW YORK (AP) -- Staples is looking into a potential credit card data breach and has been in touch with law enforcement officials about the issue.
The office supplies retailer said Tuesday that if it turns up any data discrepancies during its investigation, customers won't be responsible for fraudulent activity on their credit cards as long as it is reported in a timely manner.
"We take the protection of customer information very seriously, and are working to resolve the situation," spokesman Mark Cautela said in a statement.
Earlier this month Sears Holdings Corp. reported a breach at its Kmart stores that started last month, saying some customers' credit and debit cards may have been compromised. Other breaches have occurred at retailers including Target Corp., Supervalu Inc. and Home Depot Inc..
Shares of Staples Inc., based in Framingham, Massachusetts, slipped 3 cents to $12.27 in midday trading. Its shares have fallen 23 percent over the past year.
UNDATED (AP) -- Coca-Cola and McDonald's are reporting declining profits.
Coke says its third-quarter net income was $2.11 billion, down 14 percent as beverage volume rose 1 percent, thanks to an increase in non-carbonated drinks. The world's biggest beverage maker also announced a new plan that it said will reduce costs by $3 billion a year by 2019. For this year, the company said it expects earnings per share to miss its long-term target.
McDonald's saw customer traffic fall around the world. Sales took a big hit in Asia, where a major supplier was shown on TV repackaging expired beef. In the U.S., McDonald's is fighting to hold onto customers amid shifting tastes toward food people consider more wholesome.
For the quarter, revenue declined to just under $7 billion, falling short of Wall Street expectations.
Also reporting results this morning, Verizon Communications reported lower net income but higher revenue in its third quarter, helped by strong wireless subscriber growth and demand for its FiOS Internet services.
Higher cigarette prices helped cigarette maker Reynolds American's net income rise 2.2 percent in its third quarter.
MORTGAGE RISK RULES
WASHINGTON (AP) -- New U.S. rules aimed at getting banks to take on more of the risk when they package and sell mortgage securities are being relaxed with an eye to spurring broader home lending.
Federal regulators have dropped a key requirement: a 20 percent down payment from the borrower if a bank didn't hold at least 5 percent of the mortgage securities tied to those loans on its books.
The long-delayed final rules unveiled Tuesday by six federal agencies include the less stringent condition that borrowers not carry excessive debt relative to their income.
The board of the Federal Deposit Insurance Corp. voted 4-1 Tuesday to adopt the rules.
The rules, proposed in stricter form in 2011, were mandated by the overhaul law enacted in the wake of the 2008 financial crisis.
WASHINGTON (AP) -- Unemployment rates fell in 31 U.S. states in September, including many currently embroiled in tough political campaigns. The report is the final data on state unemployment before the midterm elections Nov. 4.
The Labor Department says that unemployment rates rose in 8 states and were unchanged in 11 states. That is the smallest number of states to see an increase since April.
Employers added jobs in 39 states and cut jobs in 10. South Dakota's job count changed little.
Colorado and Kentucky, two states with hard-fought Senate campaigns, experienced the biggest declines in unemployment. Colorado's fell to 4.7 percent from 5.1 percent, and Kentucky's rate dropped to 6.7 percent from 7.1 percent.
Nationwide, the unemployment rate declined to 5.9 percent in September, from 6.1 percent the previous month.
GREENSBORO, N.C. (AP) -- A North Carolina company is recalling nearly 12,000 boxes of pain relief tablets sold at Dollar Tree stores because some cartons contain a different medication that could cause allergic reactions.
Greensboro-based Contract Packaging Resources Inc. says it mistakenly placed bottles of ibuprofen inside boxes sold at Dollar Tree stores nationwide as Assured brand naproxen sodium tablets.
Some consumers buy naproxen sodium pain relievers because of allergies to ibuprofen. The packaging company says reactions that can include hives or life-threatening respiratory problems, but it hasn't received any reports of adverse reactions.
Consumers who bought 15-count boxes of 220mg Assured brand naproxen sodium tablets may return them to the store of purchase or call 336-252-3422.
CVS develops tobacco-free prescription network
First, CVS Health pulled tobacco from its store shelves. Now, it plans to make some customers think twice about filling prescriptions at other stores that still sell smokes.
The nation's second-largest drugstore chain is developing a new tobacco-free pharmacy network for clients of its Caremark pharmacy benefits management business.
The network would slap an extra co-payment on patients who fill their prescriptions at stores that still sell tobacco. That payment won't apply to prescriptions filled in the tobacco-free network, which would include CVS and Target locations nationally, as well as other pharmacies that abstain. Target Corp. gave up tobacco sales in 1996.
CVS national rivals Walgreen Co. and Rite Aid Corp. still sell tobacco.
The tobacco-free network will only be used by the pharmacy-benefit management customers that choose it.
DALLAS (AP) -- Kimberly-Clark plans to eliminate up to 1,300 jobs as part of restructuring efforts aimed at reducing costs and making its business more efficient.
The consumer products company has 58,000 workers worldwide, according to its website.
Kimberly-Clark Corp. said Tuesday that it anticipates restructuring costs between $130 million and $160 million, after taxes. The company -- whose brands include Kleenex and Huggies -- foresees between $120 million and $140 million in savings by the end of 2017.
The restructuring is expected to be completed by 2016's end.
Kimberly-Clark also cut its 2014 adjusted profit forecast to account for the spinoff of its health care business. The Dallas company now expects an adjusted profit between $5.93 and $6.03 per share, down from its prior range of $6 to $6.15 per share. Analysts polled by FactSet expect $6.06 per share.
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