Explaining that its results display a new seasonality as a result of its acquisition of Columbia Energy Group, NiSource Inc reported a second quarter net loss of $8 million or 4 cents per basic share, compared to net income of $23.4 million or 19 cents per basic share in the second quarter last year.

NiSource acquired Columbia Nov. 1, 2000. Columbia takes in the bulk of its full-year earnings in the first and fourth quarters. The seasonality, coupled with the financing costs of the acquisition, which are incurred year-round, added up to the quarter’s poor results. For the first half of the year NiSource had net income of $180.8 million, or 88 cents per basic share, compared to $103.0 million, or 84 cents per basic share, for the first six months in 2000.

NiSource Chairman Gary L. Neale said, “company operations remain strong with merger savings on track for 2001 and beyond. We further have realigned our business segments to include a merchant business segment that will allow us to capitalize on the optionality created by our geographic and supply alternatives. This segment includes gas and power trading and wholesale power sales, as well as our existing power plant development subsidiary – Primary Energy.”

NiSource listed warmer than expected weather, higher uncollectible customer accounts because of increased gas costs, additional costs associated with its fiber optic network (currently being divested), and a one-time, after-tax charge of $9.3 million due to the settlement of litigation related to Market Hub Partners, which was sold in the third quarter of 2000. Also, the company said interest costs were higher than anticipated by $8.6 million after-tax due to a delay in certain asset sales.

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