Rocked by investor concerns that have led to a liquidity crunch — and a drop in share value of almost 88% in a year — AES Corp. has approved a plan to massively restructure its operations, including a 41% cut in capital expenditures, a move to distance its exposure in Latin America, and withdrawing from electricity trading. AES’s share price plunged from $10/share on Feb. 13 to just above $4 on Friday in reaction to its Venezuela exposure, which forced CEO Dennis W. Bakke to sell almost seven million of his 32 million shares of stock on a margin call to prop up a $36 million personal loan. Two other officers also sold 400,000 shares because of margin calls.
Expenses
Articles from Expenses
FERC Rules on Trunkline Rates; Tosses Charitable Expenses
A CMS Trunkline spokesman said executives had not had time to studythe 110-page order, but based on a quick reading expected it would resultin some reduction of rates. The new formulas included in the order wouldhave to be applied to the underlying data to calculate a specific number.
January 17, 2000
ARCO Earnings, Excluding Items, Drop 81%
ARCO’s announcement last week that it will cut $500 million inexpenses and 900 jobs over the next two years was put inperspective yesterday when the company said third quarter earningsexcluding special items plummeted 81% to $61 million, or$0.19/share, compared to $313 million, or $0.96/share, in the thirdquarter of last year. Net income, including special items anddiscontinued operations, was $872 million, or $2.67 per dilutedshare, compared to $516 million, or $1.57/share in 3Q97.
October 23, 1998
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