Xcel Energy 2004 Annual Report Download - page 4

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Xcel Energy Annual Report 2004
2
2004 was a good year for Xcel Energy. We focused our full attention on our core
electric and natural gas businesses to achieve two top priorities:
– growing the business to build value for you; and
– meeting the energy needs of our customers.
Our accomplishments in 2004 and our plans for the future demonstrate that we are
determined to stay fi rmly focused on what we do best – generating and delivering
safe, reliable energy – and achieve success solely as a regulated utility. We call that
strategy Building the Core, and its fi rst full year of execution produced good results.
the year in review
Xcel Energy met its fi nancial expectations in 2004, based on our initial earnings
guidance of $1.15 to $1.25 per share. Earnings from continuing operations were
$527 million, or $1.27 per share on a diluted basis, compared with $526 million, or
$1.27 per share, in 2003.
Total earnings were $356 million, or 87 cents per share, compared with $622 million,
or $1.50 per share, in 2003. Those results include the impact of discontinued
operations, which were losses of $171 million, or 40 cents per share, in 2004. The
losses include an after-tax impairment charge of $143 million, or 34 cents per share,
related to the planned sale of Seren Innovations, Inc., our broadband communications
company. The results in 2003 included tax benefi ts related to Xcel Energy’s write-off
of its investment in NRG Energy, Inc., which was divested at year-end 2003.
Our earnings guidance for 2005 is in the range of $1.18 to $1.28 per share from
continuing operations. Long term, our goal is to grow earnings per share 2 percent to
4 percent annually and deliver a total return of 7 percent to 9 percent.
Strong fi nancial prospects mid-year allowed us to increase your annual dividend rate
by 8 cents per share. This year, the board will evaluate our dividend policy again,
taking into consideration:
– our ability to grow earnings;
– our plans to invest signifi cant capital in the business;
– our goal to improve our credit ratings; and
– our desire to provide you with an appropriate return on your investment.
dear shareholders
Xcel Energy AR 2004
determined to stay fi rmly focused