Rochester Gas and Electric Corp. Reports Higher Earnings and Revenues in 1995 Second Quarter

Strategic Insights -

Rochester Gas and Electric Corp. has reported higher earnings and revenues for the 1995 second quarter, despite earnings for the six-month period being flat and earnings for the 12-month period being down. The company credits cost savings from a workforce reduction program completed in October 1994 and ongoing cost control for the increased earnings. Additionally, lower local and state taxes in the current quarter contributed to the higher earnings per share.

Key Takeaways:

  • The company reported earnings of 34 cents per share on revenues of $219,546,000 for the second quarter of 1995, compared to earnings of 20 cents per share on revenues of $217,083,000 in the same period of 1994.
  • Earnings applicable to common stock for the second quarter of 1995 were $12,995,000, compared to $7,742,000 for the same period in 1994.
  • For the six-month period, earnings were $1.09 per share on revenues of $500,553,000, compared to $1.08 per share on revenues of $527,134,000 for the same period in 1994.
  • The company completed a workforce reduction program in October 1994, resulting in a one-time charge of $33.7 million, reducing earnings for the current 12 months by 59 cents a share after tax.
  • Charges for the 1993 programs totaled $8.2 million, reducing earnings per share for the previous 12 months by 15 cents.

Statistics:

  • Earnings per share for the second quarter of 1995: 34 cents
  • Revenues for the second quarter of 1995: $219,546,000
  • Earnings applicable to common stock for the second quarter of 1995: $12,995,000
  • Earnings per share for the six-month period of 1995: $1.09
  • Revenues for the six-month period of 1995: $500,553,000
  • Pre-tax earnings from gas operations: reduced by approximately $5.3 million this year
  • Pre-tax earnings for the calendar year to date: reduced by an additional $4.2 million
  • One-time charge from the 1994 workforce reduction program: $33.7 million
  • Charges for the 1993 programs: $8.2 million

Sources:

  • "Rochester Gas and Electric Corp. (NYSE: RGS) Reports Higher Earnings and Revenues" (PRNewswire, July 24, 1995)