Following on its announcement that it will report a loss for the quarter ending June 30, primarily due to a decline in energy trading, New Jersey-based NUI Corp. said Tuesday it will take immediate steps to cease operations of its TIC Enterprises LLC venture’s unprofitable divisions, including TIC’s telecom equipment and shipping divisions.

NUI will transfer management of TIC’s profitable network services and wireless divisions to NUI Telecom, Inc., its telecommunications subsidiary. NUI said it had been unsuccessful in selling TIC. This will result in the company recording a third (fiscal) quarter, pre-tax loss of approximately $12 million, representing a write-down of all remaining assets and results related to TIC’s unprofitable operations.

Late last week, NUI, parent of Elizabethtown Gas, blamed a decline in energy trading for an anticipated loss in the third quarter (ending June 30). Results, to be announced July 24, will show a net loss from continuing operations of between $2.5 million and $3.0 million, or $(0.17) to $(0.20) per share. This compares with earnings of $2.7 million, or $0.19 per share, from continuing operations for the third quarter one year ago. The Wall Street consensus estimate for the company’s earning in the last quarter had been $0.10 per share.

“NUI’s revised projections are primarily due to lower-than-anticipated results from energy trading, a development that is expected to continue for the remainder of the fiscal year. These lower energy trading results are due to reduced price volatility in the market and lower volumes resulting from (1) fewer trading counterparties as a result of changes in the credit quality of other energy trading companies and (2) trading companies totally exiting the business.

Despite these adverse factors, NUI’s trading organization still is expected to be a significant contributor to year-end results. As a result of issues in the trading arena and other factors, NUI now expects fiscal 2002 earnings, before special items, to be between $1.50 – $1.60 per share, down from the company’s previous guidance of $1.80 – $1.90 per share.

NUI’s initial earnings guidance for fiscal 2003 is $1.90 to $2.00 per share, including the impact of a planned equity offering during the fiscal year.

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