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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AMAZON-CLOUD COMPUTING BUSINESS
NEW YORK (AP) -- Amazon's profitable cloud-computing services business is growing by leaps and bounds.
That growth helped the e-commerce company Thursday post a 15 percent first-quarter revenue jump and a smaller-than-expected loss. The results sent Amazon's shares up 6 percent in aftermarket trading.
Investors have been growing restless with Amazon's long-term strategy of plowing most of the money it makes into new areas like cloud computing, streaming video and hardware -- leading to razor-thin profits or, in this quarter's case, a loss.
Because Amazon had never broken out details on Amazon Web Services before, it wasn't clear if it was operating at a profit or loss. But details released on Thursday show that surging revenue isn't coming at expense of a profit in that business, reassuring investors.
Amazon has rolled out a series of new offerings in recent months.
DEATH OF COMCAST-TIME WARNER CABLE
NEW YORK (AP) -- Comcast is dropping its $45 billion bid for Time Warner Cable after heavy regulatory pushback.
The combined company would have put nearly 30 percent of TV and about 55 percent of broadband subscribers under one roof, which would give the resulting behemoth unprecedented power over what Americans watch and download.
Competitors, consumer groups, and politicians have criticized the deal, saying it would lead to higher prices and less choice.
Even with the Comcast saying Friday that the deal was off, cable companies are likely to keep combining as costs rise for the shows, sports and movies they pipe to subscribers and video customers decrease.
Many analysts expect that Charter Communications Inc., which lost out on its bid for Time Warner Cable Inc. to Comcast Corp., to resurrect its effort.
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The Commerce Department says orders for durable goods rebounded 4 percent in March after having fallen 1.4 percent in February. The strength was led by a big jump in demand for commercial aircraft. But outside of the transportation category, orders were down for a sixth straight month.
There was also a 0.5 percent drop in demand in the category that serves as a proxy for business investment plans. The decline followed a 2.2 percent drop in February. This key investment category has been down seven consecutive months.
FORT WORTH, Texas (AP) -- American Airlines Group Inc. (AAL) on Friday reported first-quarter earnings of $932 million.
The Fort Worth, Texas-based company said it had net income of $1.30 per share. Earnings, adjusted for non-recurring costs and pretax expenses, came to $1.73 per share.
The results surpassed Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of $1.70 per share.
The world's largest airline posted revenue of $9.83 billion in the period, also topping Street forecasts. Four analysts surveyed by Zacks expected $9.82 billion.
American Airlines shares have dropped 4 percent since the beginning of the year. The stock has increased 39 percent in the last 12 months.
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At a meeting today in Latvia, Greece's finance minister heard a series of rebukes from his counterparts in the eurozone for failing to come up with a comprehensive list of economic reforms.
The eurozone's top official calls it a "very critical discussion."
Others spoke of being "tired" and "annoyed" with the way the talks were going. Austria's finance minister says they made those points "very vigorously."
Two months ago, Greece won an agreement from the eurozone under which it would get the remaining money in its bailout fund -- about $7.7 billion -- but only if it came up with a set of reforms that everyone could agree on.
There are just days to go before that deadline, and Athens has yet to present a full list.
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BRUSSELS (AP) -- The European Union has authorized the use of more genetically modified food and feed amid a row over whether EU member states should be able to independently ban certain GM products.
The EU's executive commission said Friday that it has approved 10 GM foods, including strands of maize, soybean and cotton, after they "have been proved to be safe." Two kinds of GM cut flowers were also authorized.
The European bio-industries association expressed satisfaction that the EU has "finally decided to authorize imports of safe products."
The EU and its member nations have been locked in a dispute over whether countries should be allowed to individually ban GM produce that EU institutions consider safe.
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The decision to swap sweeteners comes as Americans keep turning away from popular diet sodas. Coca-Cola said this week that sales volume for Diet Coke fell 5 percent in North America in the first three months of the year.
Executives at Coke and Pepsi blame the declines on perceptions that aspartame, first sold under the brand name Nutrasweet, isn't safe. That's even though the Food and Drug Administration says more than 100 studies support aspartame's safety.
Still, PepsiCo says it wanted to listen to its customers.
Andrea Foote, PepsiCo spokeswoman, says the reformulated Diet Pepsi drinks will start hitting shelves in August.
WASHINGTON (AP) -- Major recalls from two well-known ice cream companies due to the discovery of listeria bacteria raise questions about how the pathogen could have contaminated multiple ice cream manufacturing plants -- and whether the discoveries are related.
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Attorney General Eric Schneiderman (SHNEYE'-dur-muhn) filed the lawsuits against Portofino Spas and Total Tan Thursday. He says both franchises falsely advertise the health benefits of indoor tanning by promoting it as a safe alternative to tanning outdoors.
Schneiderman says there's nothing safe about indoor tanning. He accuses the two companies of supporting the opposite message.
Attorneys for Total Tan denied the allegations. Representatives for Portofino didn't immediately respond to requests for comment.
Schneiderman says lawsuits are also coming against Planet Fitness and Beach Bum Tanning.
A spokesman for Planet Fitness says the company is working toward a resolution. Representatives for Beach Bum Tanning didn't comment.
GENERAL MOTORS-EXECUTIVE COMPENSATION
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Barra and other top executives got only 74 percent of the cash incentives they could have received, because GM fell short of goals set by the board. But her stock awards more than doubled from 2013 when she was senior vice president of for product development and purchasing.
GM reported its 2014 compensation Friday in its proxy filing with the U.S. Securities and Exchange Commission. The company also announced that its annual stockholders meeting will be held on June 9 at GM's Detroit headquarters.
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