Enron Corp. - University of California | Office of The President

Enron Corp. announced today 1998 third quarter earnings of $[0.235] per
diluted share compared to $[0.23] ... in the third quarter of 1997. The results were
led by continued growth in Wholesale Energy Operations and Services ....
"We are very pleased to report another quarter of strong results, generating
$168 million of net income compared to $134 million a year ago. In a period of
financial market uncertainty and commodity price volatility, Enron has
demonstrated its ability to consistently generate solid and predictable earnings, as
evidenced by the 60 percent increase in earnings in our Wholesale business," said
Kenneth L. Lay, Enron Corp. chairman and chief executive officer.
... "[P]rospects for future earnings growth continue to strengthen with the
excellent progress of our new retail energy business," Lay said. "This quarter,
Enron Energy Services signed contracts representing over $850 million of value,
70 percent over our plan."
119. On 10/13/98, Enron held a conference call for analysts and investors to discuss
Enron's 3rdQ 98 results and its business. During the call, Skilling, Koenig, Causey and Fastow
stated:
• Enron's news was extremely good. Enron had another excellent quarter.
• Everything was going great with Enron. On a very positive note, Enron hedged
its investment portfolio and its hedges in the investment portfolio performed
extremely well even in uncertain financial markets. Really good news in the
finance and investing component. Enron could not state how strong the wholesale
business was.
• Enron had a great quarter in the wholesale business. Enron was setting up for a
great fourth quarter and a great 99 in the wholesale business.
• Throughout 98, Enron's management disciplines were effective. This clearly
differentiates Enron from its competitors.
• Enron made significant strides in building both the skills and execution
capabilities of EES, its new retail business. EES is very well positioned to
capitalize on the unique opportunity in the retail commodity and services market.
Enron was poised for long-term success in this business. Everything was on track
in retail energy services. EES was looking very, very strong.
• EES also continued to significantly expand its contracting activities. It was a very,
very strong quarter for EES. EES would be profitable by the 4thQ 99.
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