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March 10, 2008 |
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CMS ENERGY: Net Loss Rises to US$227 Mil. in Year Ended Dec. 31 CMS Energy Corp. reported net loss of US$127 million for fourth quarter ended Dec. 31, 2007, compared to net loss of US$32 million in the fourth quarter of 2006. The 2007 fourth quarter loss included an after-tax charge of US$193 million as a result of the restructuring of various electric supply agreements at the Dearborn Industrial Generation facility. For full year 2007, the company reported net loss of US$227 million, compared to a net loss of US$90 million for 2006. The reported net loss for the year was caused by US$428 million from a charge for restructuring some electric supply agreements and currency translation account losses associated with the sale of international assets. CMS Energy completed US$1.5 billion in international asset sales in 2007. The company's 2007 adjusted non-Generally Accepted Accounting Principles net income, which excludes gains and losses from asset sales, impairment charges and other items, was US$201 million compared to adjusted net income of US$103 million for 2006. The 2007 fourth quarter adjusted net income was US$59 million compared to adjusted net income of US$62 million for the same period of 2006. CMS Energy reaffirmed its guidance for 2008 adjusted earnings of US$1.20 per share. While the company expects 2008 reported earnings to be about the same as its adjusted earnings, reported earnings could vary because of gains or charges relating to previously sold assets or other factors. "2007 was a successful transition year for the company as it exited international markets, reduced debt, and invested substantially in its Michigan utility, Consumers Energy," David Joos, the president and chief executive officer of CMS Energy, said. "That success allowed us to increase the common stock dividend by 80% in January," Mr. Joos said. "We will continue to implement that successful strategy in 2008 and build upon our company's underlying strength, which can be seen in our adjusted results. We expect adjusted earnings to be back on track in 2008 and to grow by an average annual rate of 6% to 8% over our five-year planning horizon." "Michigan policy makers are currently considering changes needed in the state's energy policy to assure the state has reliable and affordable energy to meet the future needs of customers," Mr. Joos commented on the ongoing energy policy discussions in Michigan. "The adoption of those changes will allow the company to fully implement its plan to invest US$6 billion in the utility over the next five years in energy efficiency, renewable energy, environmental and customer service enhancements, and new power generation," Mr. Joos said. At Dec. 31, 2007, the company's balance sheet showed total assets of US$14.19 billion, compared to US$15.37 billion at Dec. 31, 2006. About CMS Corp. Headquartered in Michigan, CMS Energy Corp. (NYSE: CMS) -- http://www.cmsenergy.com/ -- is a company that has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation. The company has offices in Venezuela. * * * As reported in the Troubled Company Reporter on Dec. 6, 2007, Fitch Ratings rated CMS Energy Corp.'s issuer default rating 'BB+' with a stable outlook. |
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