Records $7 million after-tax charge against
first quarter 2004 GAAP earnings
RICHMOND, Va. - Dominion (NYSE: D) said today it will record
an additional $7 million after-tax charge against its first quarter 2004 earnings
prepared in accordance with generally accepted accounting principles (GAAP)
related to an agreement to settle a class action lawsuit. The lawsuit involved
a dispute over Dominion’s rights to lease fiber-optic cable along a portion
of its electric transmission corridor. The settlement agreement is subject to
court approval.
On April 20, Dominion announced net income for the three months
ended March 31, 2004, of $444 million ($1.36 per share). The additional after-tax
charge of $7 million (2 cents per share) now results in net income of $437 million
($1.34 per share). This charge will be reflected in Dominion’s first quarter
2004 financial statements filed with the Securities and Exchange Commission
on Form 10-Q.
The charge, reported in the corporate segment, is excluded
from operating earnings and does not affect Dominion’s previously reported
operating earnings of $1.37 per share. A revised detailed description of the
items included in 2004 GAAP earnings but excluded from operating earnings can
be found at the end of this press release or by visiting our Web site at www.dom.com/investors.
Dominion is one of the nation's largest producers of energy,
with an energy portfolio of more than 24,000 megawatts of generation, 6.4 trillion
cubic feet equivalent of proved natural gas reserves and 7,900 miles of natural
gas transmission pipeline. Dominion also operates the nation's largest underground
natural gas storage system with more than 960 billion cubic feet of storage
capacity and serves 5.3 million retail energy customers in nine states. For
more information about Dominion, visit the company's Web site at www.dom.com.
