PPL Corporation (NYSE: PPL) has built a business model that provides the company with opportunities to succeed in a wide variety of market and economic conditions, the company's chairman said Friday (4/28).
"The benefits of our business model have been evident over the past several years – and 2005 certainly was no exception," William F. Hecht, PPL chairman and chief executive officer, told shareowners at the company's annual meeting. "We significantly improved earnings from ongoing operations despite very challenging wholesale market conditions. We also published, for the first time, a forecast for the remainder of the decade, which we increased in February to a double-digit level of compound annual earnings growth through 2010."
PPL now targets earnings of $3.50 per share in 2010, which represents an 11 percent compound annual growth rate based on 2005 earnings from ongoing operations.
"Our solid operating results and visible growth prospects also have allowed us to increase our annual dividend to $1.10 per share, which is more than double the level of just five years ago," said Hecht.
Hecht told shareowners attending the meeting at the Holiday Inn Conference Center in Fogelsville that PPL continues to provide superior returns to shareowners.
"A $100 investment in PPL common stock on Dec. 31, 2000, grew by 54 percent through the end of 2005, assuming the reinvestment of dividends. Such an investment in the stocks of the Standard & Poor's 500 Index ® would have increased by just 3 percent," said Hecht.
Shareowners also heard presentations from James H. Miller, PPL president and chief operating officer, and John R. Biggar, executive vice president and chief financial officer.
During the meeting shareowners re-approved PPL's Short-Term Incentive Plan for executive officers of the company, re-elected four members to the board of directors, and ratified the appointment of Ernst & Young as the company's independent auditors.
Shareowners also approved a shareowner proposal recommending that the board of directors take steps necessary for a simple majority vote, to the extent possible, on issues that can be subject to a shareowner vote. Hecht said this already is the standard for most matters voted on by PPL shareowners, but that the board would review the company's voting standards in light of the recommendation.
Elected to serve three-year terms on PPL's board of directors were: John W. Conway, president and chief executive officer, Crown Holdings, Inc.; E. Allen Deaver, retired executive vice president and director, Armstrong World Industries; Miller; and Susan M. Stalnecker, vice president, risk management, E.I. du Pont de Nemours and Company.
Continuing to serve on the board are (current term expiration in parentheses): Frederick M. Bernthal, president, University Research Associates (2008); Biggar (2008); Louise K. Goeser, president and chief executive officer, Ford of Mexico (2008); Stuart Heydt, retired chief executive officer, Geisinger Health System (2007); Craig A. Rogerson, president and chief executive officer, Hercules Incorporated (2007); W. Keith Smith, retired vice chairman, Mellon Financial Corporation, and retired senior vice chairman of Mellon Bank, N.A. (2007); Keith H. Williamson, president, capital services division, Pitney Bowes Inc. (2008); and Hecht, whose current term expires in 2007, but who has announced that he plans to retire from the company and the board before the end of this year.
PPL Corporation, headquartered in Allentown, Pa., controls about 12,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to more than 5 million customers in Pennsylvania, the United Kingdom and Latin America. More information is available at www.pplweb.com.
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Statements contained in this news release, including statements with respect to future earnings, growth and corporate strategy, are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: market demand and prices for energy, capacity and fuel; market prices for crude oil and the potential impact on the phase-out of synthetic fuel tax credits and synthetic fuel operations; weather conditions affecting generation production, customer energy usage and operating costs; competition in retail and wholesale power markets; liquidity of wholesale power markets; the effect of any business or industry restructuring; the profitability and liquidity, including access to capital markets and credit facilities, of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operation and availability of existing generation facilities and operating costs; transmission and distribution system conditions and operating costs; current and future environmental conditions and requirements and the related costs of compliance, including environmental capital expenditures and emission allowance and other expenses; significant delays in the planned installation of pollution control equipment at certain coal-fired generating units in Pennsylvania due to weather conditions, contractor performance or other reasons; development of new projects, markets and technologies; performance of new ventures; asset acquisitions and dispositions; political, regulatory or economic conditions in states, regions or countries where PPL Corporation or its subsidiaries conduct business; any impact of 2005 hurricanes on PPL Corporation's business, including any impact on fuel prices; receipt of necessary governmental permits, approvals and rate relief; new state, federal or foreign legislation, including new tax legislation; state, federal and foreign regulatory developments; impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries and the energy industry; capital markets conditions, including changes in interest rates, and decisions regarding capital structure; stock price performance of PPL Corporation; the market prices of equity securities and the impact on pension costs and resultant cash funding requirements for defined benefit pension plans; securities and credit ratings; foreign currency exchange rates; the outcome of litigation against PPL Corporation and its subsidiaries; potential effects of threatened or actual terrorism or war or other hostilities; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such important factors and in conjunction with PPL Corporation's Form 10-K and other reports on file with the Securities and Exchange Commission.