PROFITS CLAIMED

Kenetech Corp, owner of Kenetech Windpower, claims to have more than doubled third-quarter revenues. Analysts, on the other hand, say that the high figures are due to the inclusion of a settlement with Pacific Gas & Electric Co for an undisclosed sum.

1 December 1994

According to Kenetech Corp, its profits are higher than expected. The San Francisco company, which owns Kenetech Windpower, claims that third quarter revenues more than doubled this year to $90.7 million, up from $39.2 million for the same quarter in 1993. Third quarter profits also rose, according to company reports, to $5.4 million or nine cents per common share after preferred dividends, compared with a net loss a year ago of $705,000, or one cent per share. The quarter ends October 1.

Some analysts who watch the company say the profits were higher than they expected, but they note the results include a settlement for an undisclosed sum with Pacific Gas & Electric Co (Windpower Monthly, September 1994).

The company further claims that total revenues in the second quarter in 1994 were $100 million, and net income was $43 million, or eight cents a share after preferred dividends, compared with total revenues a year earlier of $36 million and a net loss of $7 million or 27 cents a share. There was no preferred stock at that time.