ALLETE Reports Solid First Quarter Earnings
DULUTH, Minn.—ALLETE, Inc. (NYSE: ALE) today reported first quarter 2003 earnings of 54 cents per share, compared with 44 cents per share reported for the first quarter a year ago. Net income was $44.3 million on revenue of $422.9 million compared with $35.2 million of net income on $368.3 million of revenue in the first quarter of 2002.
“We are satisfied with the overall financial results for the quarter and are on track to meet our total year expectations,” said Dave Gartzke, ALLETE Chairman, President and CEO.
Increased wholesale power sales and prices resulted in Energy Services net income of $12.2 million compared with $9.1 million in the first quarter of 2002. Automotive Services revenue climbed 12 percent and net income increased 7 percent in spite of difficult market conditions that resulted in flat sales volume at ADESA auctions compared to last year.
In addition to net income from Water Services, this quarter’s earnings from Discontinued Operations included a $9.8 million after-tax gain on the condemnation sale of a utility system at Amelia Island, Florida. This more than offset $7.4 million of after-tax expenses associated with efforts to sell the Water Services businesses. In 2002, Discontinued Operations included exit charges of $2.3 million.
The company also announced that representatives of its subsidiary, Florida Water Services Corporation, met on April 16, 2003 with leaders of local governments that have expressed an interest in purchasing the assets of Florida Water that serve their residents. The governmental entities at the meeting discussed acquiring directly from Florida Water approximately two-thirds of Florida Water’s asset base. If it proceeds with this course of action, Florida Water would seek to sell the remaining one-third of its assets to other interested local governments, and the water systems not sold in this process would be sold to a private buyer.
ALLETE’s corporate headquarters are located in Duluth, Minnesota. ALLETE’s holdings include ADESA, the second largest wholesale vehicle auction network in North America; AFC, the leading provider of independent auto dealer financing; Minnesota Power, a low-cost electric utility that serves some of the largest industrial customers in the United States; and significant real estate holdings in Florida. For more information about ALLETE, visit the company’s Web site at www.allete.com.
The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
