News

# Reliant Reports Third-Quarter 2002 Earnings

October 29, 2002 by Jeff Shepard

Reliant Resources Inc. (Houston, TX) reported net income of $58.0 million, or$0.20 per diluted share, for the third quarter of 2002. Included in these results were $153.0 million, or$0.52 per diluted share, of significant unusual charges, including items related to the deregulation of the Texas electric market and the separation of Reliant Resources and CenterPoint Energy.

Net income for the same period of 2001 was $214.0 million, or$0.71 per diluted share, which included an after-tax charge of $28.0 million, or$0.09 per diluted share, for exiting the company's telecommunications business. Excluding the significant unusual charges referenced above, net income for the third quarter of 2002 was $211.0 million, or$0.72 per diluted share, compared to $242.0 million, or$0.80 per diluted share, for the same period in 2001.

For the first nine months of 2002, income before the cumulative effect of accounting change was $333.0 million, or$1.14 per diluted share, compared to $521.0 million, or$1.92 per diluted share, for the same period of 2001. Excluding the significant unusual charges, gains and the cumulative effect of accounting change, net income for the first nine months of 2002 was $415.0 million, or$1.42 per diluted share, compared to $581.0 million, or$2.13 per diluted share, for the same period in 2001.