Entergy 2002 Annual Report Download - page 4

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“Entergy’s financial
performance was
reflected in total
shareholder return
of 20 percent for
2002, compared
with negative
22 percent for
the S&P 500.”
n a turbulent year for our industry and our
economy, Entergy stood out with consistently
strong performance. We did that by sticking
to the strategy we adopted nearly five years
ago, and staying true to our principles and
our commitments.
This report highlights how Entergy is
standing up for our stakeholders and our
beliefs. It also spotlights stand-out performance
of Entergy employees in all these efforts.
2002 performance highlights
In 2002, Entergy’s as reported earnings were
$2.64 per share, down from $3.23 per share in
2001, as a result of special charges related to
our wholesale power development business.
Excluding those charges, 2002 operational
earnings were $3.81 per share, an increase
of 18 percent.
Entergy’s financial performance was reflected
in total shareholder return of 20 percent for
2002, compared with negative 22 percent for the
S&P 500.
The Board of Directors approved a 6 percent
increase in the common dividend, to $1.40 on
an annualized basis. This was the third
consecutive year that the Board increased
the dividend by 5 percent or more.
In June, the Edison Electric Institute
presented Entergy with our industry’s most
prestigious honor, the Edison Award. In
October, Entergy was recognized as the
“Power Company of the Year” at the
Platts/BusinessWeek Global Energy Awards.
Entergy’s success is based on strong operational
performance in all of our businesses: our utility
companies, our nuclear generation business,
and the energy trading and gas pipeline
businesses at Entergy-Koch, LP. The
performance of each business is detailed
in the following report.
Still, one achievement deserves special
recognition: Entergy employees’ outstanding
performance in the face of two major tropical
storms a week apart.
Tropical Storm Isidore hit Louisiana on
September 26, leaving 93,000 Entergy customers
without power. We restored power to all but
4,100 customers by the next morning, but crews
were still making repairs when preparations
began for Hurricane Lili. When Lili struck on
October 3, more than 240,000 Entergy
customers lost service, and crews restored
service to nearly 80 percent of affected
customers within 48 hours.
Where we stand today
With all the negative events affecting companies
in our industry, one highly regarded industry
investment analyst referred to Entergy as the
“last man standing.”
But five years ago we were on the brink
ourselves. We refocused our strategy and divested
over $5 billion of under-performing assets. We
committed ourselves to maintaining average
earnings growth of 8 to 10 percent a year.
Entergy has delivered significantly more than
that rate of growth in operational earnings,
after offsetting some disappointments and
changes in direction. For example, as new
ENTERGY CORPORATION AND SUBSIDIARIES 2002
2
IITA
TO OUR STAKEHOLDERS: