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

Enron Corp. had a 12.5% increase in recurring earnings per diluted share to $0.27
versus $0.24 in 1998. [N]et income increased 73% ... to $290 million, up from $168
million the previous year....
Wholesale Energy Operations and Services are continuing to be the most principal
contributor of earnings, a quickly growing element of the company. During the third
quarter, the Wholesale Group produced IBIT of $378 million – a 36.5% increase over
the $277 million last year.
* * *
Enron Energy Services (EES) reported the best quarterly results since the beginning
of the business.... ENE contracted $2.5 billion of customer's future expenditures for
energy and services compared to $850 million a year ago. This quarter's results
included the largest outsourced contract signed to date, a 10-year outsource
agreement with Owens Corning ....
187. On 11/2/99, Dow Jones Energy Service ran the following statement on Enron:
Enron Taking Step Toward Bandwidth Commodity Market
Enron Corp. is currently testing hardware and software in order to start
trading telecommunications bandwidth capacity early next month.
The installations, in New York City and Los Angeles, are key steps in a
pioneering proposal that could create a market worth "hundreds of billions of dollars
a year." Tom Gros, Enron Communications vice president of global bandwidth
trading, told Dow Jones Newswires.
188. As a result of Enron's strong 98, 1stQ, 2ndQ and 3rdQ 99 results and the extremely
positive statements about Enron's business made by Enron, the Enron Defendants and Enron's banks,
Enron stock was a strong performer during 99 advancing from $27 per share in 12/98 to $43-$44 by
8/99. In 11/99, Enron's stock traded as high as $43 per share. As Enron's stock increased in price
due to these very positive statements about Enron's business, Enron insiders took advantage of this
artificial inflation of Enron stock by selling off approximately six million shares of their Enron stock
during 10/98-12/99 at as high as $43.40 per share, pocketing $208 million in illegal insider trading
proceeds.
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