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

million shares between 7/11/00 and 9/28/00 at as high as $90 per share, pocketing $108 million in
illegal insider trading proceeds.
262. On 10/17/00, Enron reported better-than-expected 3rdQ results:
Enron Corp. announced today a 26 percent increase in earnings to $0.34 per
diluted share for the third quarter of 2000 compared to $0.27 of recurring earnings
a year ago. Corresponding net income in the recent quarter increased 31 percent to
$292 million....
"Enron delivered very strong earnings growth again this quarter, further
demonstrating the leading market positions in each of our major businesses," said
Kenneth L. Lay, chairman and CEO of Enron. "Our wholesale and retail energy
businesses have achieved record-setting levels of physical deliveries, contract
originations and profitability. We operate in some of the largest and fastest
growing markets in the world, and we are very optimistic about the continued
strong outlook for our company."
263. On 10/17/00, Enron held a conference call for analysts and investors to discuss
Enron's 3rdQ 00 results and its business and its prospects. During the call, and in the follow-up
conversations with analysts, Skilling, Koenig, Causey, Frevert and Fastow stated:
• Enron had another excellent quarter across the Company. For the 3rdQ, Enron
recorded a 26% increase in earnings to $.34 per diluted share compared to $.27 a
year ago.
• Enron's wholesale energy business reported a 66% increase in income to $627
million in the 3rdQ versus $378 million last year. Enron had consistently
increased year-over-year quarterly earnings in this business. A total of 19
consecutive quarters, or almost five years, and this was just due to the very, very
strong franchise position Enron had in virtually all of the markets where it
participated in the wholesale business.
• Today this business also included merchant investments in the energy and
communications sector, primarily the energy sector. Enron protected the value of
these investments through hedging and other risk management techniques.
• EES had really been running at a breakout pace this year. Third quarter IBIT was
$30 million compared to a loss of $18 million a year ago which is a $48 million
positive swing in earnings.
• In bandwidth intermediation Enron was actively making markets and transacting
in bandwidth. In the 3rd Q, it confirmed 24 transactions with nine counterparties.
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