Financial Highlights
Products and Services Provided
PPL Corporation (NYSE: PPL), headquartered in Allentown, Pennsylvania, controls more than 11,000 megawatts of electric power generating capacity in the United States, sells energy in key U.S. markets and delivers energy to more than 5 million customers in Pennsylvania, the United Kingdom and Latin America. Information as of Jan. 1, 2007. Click here for information about subsequent divestitures.
| Financial Highlights |
2006 |
2005 |
| Operating revenue (millions)(a) |
$6,899 |
$6,179 |
| Operating income (millions) |
$1,599 |
$1,349 |
| Diluted earnings per share(b)(c) |
$2.25 |
$1.77 |
| Diluted earnings per share - ongoing operations(b)(c) |
$2.22 |
$2.08 |
| Net income (millions)(b) |
$865 |
$678 |
| Total assets (millions)(d) |
$19,747 |
$17,926 |
| Common stock shares outstanding (thousands)(d) |
385,039 |
380,145 |
| Number of shareowners(d) |
77,762 |
79,198 |
| Dividends declared per share |
$1.10 |
$0.96 |
| Dividend yield(d) |
3.07% |
3.27% |
| Dividend Payout ratio(e) |
49% |
54% |
| Price/earnings ratio(d)(e) |
16.00 |
16.61 |
| Return on average common equity |
17.81% |
15.65% |
| Sales (millions of kilowatt-hours) |
2006 |
2005 |
| Domestic retail energy supplied |
38,810 |
39,413 |
| Domestic wholesale energy supplied |
32,832 |
33,768 |
| Domestic energy delivered |
36,683 |
37,358 |
| International energy delivered |
33,352 |
33,146 |
| Breakdown of Operating Revenues by Country (2006) in Millions of Dollars |
| U.S. |
$5,552 |
| U.K. |
$792 |
| Latin America |
$555 |
| Total Capitalization, Debt and Equity (2006) in Millions of Dollars |
| Long-term debt |
$7,746 |
| Long-term debt with affiliate trusts |
$89 |
| Short-term debt |
$42 |
| Common equity |
$5,122 |
| Preferred securities of a subsidiary |
$301 |
| Total capital provided by investors |
$13,300 |
| Distribution to Providers of Capital (2006) in Millions of Dollars |
| Payment of common dividends |
$409 |
| Embedded cost rate, long-term debt |
6.37% |
| Reconciliation of Earnings from Ongoing Operations and Net Income (per share - Diluted) |
2006 |
2005 |
| Earnings from ongoing operations - EPS |
$2.22 |
$2.08 |
| Unusual Items: |
|
|
| PJM billing dispute |
0.01 |
(0.07) |
| Off-site remediation of ash basin leak |
0.02 |
(0.07) |
| Enron reserve adjustment |
0.03 |
|
| Sale of interest in Griffith |
(0.04) |
|
| Synfuels impairment |
(0.01) |
|
| Reversal of cost recovery - Hurricane Isabel |
(0.02) |
|
| Realization of benefits related to Black Lung trust asset |
0.05 |
|
| Susquehanna workforce reduction |
(0.01) |
|
| NorthWestern litigation |
|
(0.02) |
| Sale of Sundance |
|
(0.12) |
| Stock-based compensation adjustment |
|
(0.01) |
| Conditional asset retirement obligation |
|
(0.02) |
| Total Unusual Items: |
0.03 |
(0.31) |
| Earnings - Reported EPS |
$2.25 |
$1.77 | |
| a) |
2005 amount reclassified to conform to the current presentation. |
| b) |
Net income, or earnings, is a financial measure reported in accordance with generally accepted accounting principles (GAAP). Net income in 2006 and 2005 was affected by several unusual items. Earnings from ongoing operations excludes the impact of these unusual items. Earnings from ongoing operations should not be considered as an alternative to net income, which is determined in accordance with GAAP, as an indicator of operating performance. PPL believes that earnings from ongoing operations, although a non-GAAP measure, is also useful and meaningful to investors because it provides them with PPL’s underlying earnings performance as another criterion in making their investment decisions. PPL’s management also uses earnings from ongoing operations in measuring certain corporate performance goals. Other companies may use different measures to present financial performance. See page 110 of the annual report for the definition of earnings from ongoing operations, a reconciliation of earnings from ongoing operations and net income, and key assumptions in PPL’s earnings forecasts. |
| c) |
Calculated using earnings from ongoing operations. |
| d) |
End of period. |
| e) |
Based on diluted earnings per share. |
 This page addresses the following GRI indicators: 2.7, 2.8 (net sales; capitalization, debt and equity; assets; sales/revenue), 2.9 (shareholders), 2.11, 2.18, 2.19, EC1, EC2 and EC6
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