Today: Increasing clouds with some scattered light rain late this afternoon. High in the low to mid 80s. East wind around 5 mph.
Tonight: Mostly cloudy with some light rain at times. The low in the mid 60s.
Friday: ... More...
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 July 31, 2014 07:30 GMT
MUMBAI, India (AP) -- Asian stock markets are uninspired by an upbeat report on the U.S. economy, with most drifting lower Thursday after the U.S. Federal Reserve said it would make further cuts to its monetary stimulus as expected.
Markets slipped in Hong Kong, Tokyo and South Korea. China's Shanghai Composite was nearly flat.
Shares of South Korean consumer electronics kingpin Samsung dived 4 percent after it reported a bigger-than-expected fall in second quarter profit on slowing smartphone sales.
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- Investors will be looking at two Labor Department reports today.
The first deals with the number of people who applied for unemployment benefits last week. In the previous week, the number fell to its lowest level in more than eight years.
The second release is the second-quarter employment cost index.
Freddie Mac will also report weekly mortgage rates. Last week, the average for the 30-year loan was 4.13 percent, unchanged from the previous week.
MasterCard and Exxon Mobil will release their quarterly financial results before the market opens and LinkedIn and Tesla Motors will report quarterly earnings after the market closes.
SEOUL, South Korea (AP) -- Samsung Electronics Co. says its second-quarter profit dropped 20 percent as smartphone and tablet sales fell.
The South Korean company says its net income during the April-June quarter was $6.1 billion, the lowest since the second quarter of 2012 and below forecasts.
Samsung had warned that the second quarter would be the worst in two years as its handset business halted growth.
It struggled to compete in the cheap smartphone business, which is the fastest-growing smartphone segment.
Sales fell 9 percent while operating profit sank 25 percent, in line with Samsung's guidance earlier this month.
The company's reliance on its semiconductor business for profit is expected to increase as it cannot expect an explosive growth of handset profit anymore. Samsung is the world's largest maker of memory chips.
MILWAUKEE (AP) -- Journal Communications Inc. of Milwaukee and E.W. Scripps Co. of Cincinnati have announced an agreement to merge broadcasting operations while spinning off newspaper holdings into a separate public company.
As part of the deal announced by the companies Wednesday, the newspaper component, Journal Media Group, will be headquartered in Milwaukee.
The Milwaukee Journal Sentinel reports Journal Media Group will include the Journal Sentinel and Scripps newspapers, including the Memphis Commercial Appeal, and others.
Meanwhile, Journal Communications' broadcast assets will be folded into Scripps, with headquarters remaining in Cincinnati.
The newspaper reports Scripps will emerge from the deal as the nation's fifth-largest independent TV group, with 34 stations.
News releases say both companies' boards of directors approved the deal. It is expected to close in 2015.
BEIJING (AP) -- The owner of the KFC and Pizza Hut restaurant chains says a scandal over food safety in China has hurt sales and might be severe enough to cut into the company's global profit.
Yum Brands Inc., in a filing with the U.S. securities regulator, says the scandal over accusations Shanghai Husi Food Inc. sold expired beef and chicken has caused a "significant, negative impact" on sales.
It gave no financial details and said it was too early to know when sales might rebound. But it said that if the "significant sales impact" continues, it might hurt this year's profit.
Chinese authorities have detained five Husi employees but have yet to confirm a TV report the company sold expired meat to KFC and McDonald's Corp. restaurants in China.
WASHINGTON (AP) -- President Barack Obama will sign an executive order today that cracks down on labor violations by companies that contract with the federal government.
The White House says the order will require companies seeking federal contracts to make public any previous violations of labor laws. Federal agencies will be given more guidance on how violations should factor into contract determinations.
Obama's order will also say that corporations with large federal contracts can't force workers to submit labor disputes to binding arbitration. The White House says it's designed to ensure those who suffer sexual assault or civil rights violations can have their day in court.
The order requires that workers be given information each pay period to ensure their paychecks are accurate.
J&J withdraws fibroid treatment device from market
WASHINGTON (AP) -- Johnson & Johnson is asking surgeons not to use a line of devices for removing growths from the uterus amid regulators' growing concern that the electronic surgical tools raise the risk of spreading cancer to other parts of the body.
In April, J&J suspended sales of the devices, known as laparoscopic power morcellators, after the Food and Drug Administration discouraged doctors from using them. Surgeons use the devices to treat painful fibroids, either by removing the growths themselves or the entire uterus.
J&J says it is conducting a worldwide withdrawal of all its morcellators still on the market. The company cites an FDA meeting earlier this month that reinforced "the complexity of this issue."
FDA is weighing regulatory actions to reduce the risk of cancer spread.
NEW YORK (AP) -- Talks between Argentina and U.S.-based creditors have ended without a settlement that would avoid the country's second default in 13 years.
Argentine Economy Minister Axel Kicillof says his country is unable to accept demands of investors led by U.S. hedge funds his government has deemed "vultures."
A defiant Kicillof said Wednesday that the investors refused to a stay of a judge's order that would have allowed the country to pay other creditors while continuing negotiations.
He also said the creditors would not accept a generous compromise offered by the South American country.
A court-appointed mediator says Argentina will immediately go into default.
The Good LifeCelebrating the events, adventures and activities that represent "The Good Life" in the NewsChannel 9 viewing area.
SideroadsTake a ride with Brian Smith to explore the unique people and places to be found along the Sideroads of the NewsChannel 9 viewing area.
Road TrippinCome Road Trippin' with us and see all the great sites in your 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.
Educator of the YearVote now on your favorite candidate teacher for the Educator of the Year!
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!