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PacifiCorp retrenches
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October 23, 1998: 7:48 a.m. ET
Electric company will sell several businesses, buy back $750M in shares
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NEW YORK (CNNfn) - Regional electric provider PacifiCorp said Friday it will sell several units in order to narrow its corporate focus.
As part of a decision to exit the unregulated energy business the Portland, Ore.-based company will sell Gulf Coast natural gas supplier TPC Corp. and those elements of its PacifiCorp Power Marketing unit that serve the eastern United States.
PacifiCorp will also sell the majority of its unregulated energy development businesses.
As a result of the decision, the company wrote off its unregulated energy units as discontinued operations, taking a $151 million charge.
Excluding the charge, PacifiCorp turned a profit of $59 million or 20 cents per share, slightly under both the First Call estimate of 22 cents per share and third-quarter 1997's $68 million or 23 cents per share.
Including the charge, the company lost $92 million or 31 cents per share. Revenue leapt 59 percent to $1.91 billion from $1.2 billion a year ago.
PacifiCorp also said it expects earnings in the upcoming quarter to remain flat at 20 cents per share while full-year 1999 earnings will reach $1.20 per share.
The company said it will also institute a $750 million stock buyback program.
PacifiCorp shares (PPW) closed at 20-3/8 on Thursday, up 3/16 but still well off their highs for the year.
With its stronghold in the Pacific Northwest and Rocky Mountain area, PacifiCorp is third-largest electric utility in the western United States. The company also supplies power to a number of Australian markets.
In recent months the company has been hurt by a number of setbacks including its losing bid for British electric provider Energy Group Plc, sagging Australian profit margins and an ongoing Utah suit seeking lower pricing structures for consumer power. 
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PacifiCorp
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