American Electric Power (AEP) spilled its guts on Friday, announcing a long series of negative conditions, including the removal of about $1.6 billion in common equity from its balance sheet in the fourth quarter, plans to cut its dividend by 40% and reduce its work force, and fourth quarter and full-year net losses. But credit rating agency Standard & Poors expressed confidence in the measures the company is taking to right its financial ship. AEP shares fell sharply initially on Friday but ended the day down only 5% to $25.65.
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AEP Writes Down $1B in Assets, Plans to Cut Dividend, Work Force
American Electric Power (AEP) spilled its guts on Friday, announcing a long series of negative conditions, including the removal of about $1.6 billion in common equity from its balance sheet in the fourth quarter, plans to cut its dividend by 40% and reduce its work force, and fourth quarter and full-year net losses. But credit rating agency Standard & Poors expressed confidence in the measures the company is taking to right its financial ship. AEP earnings fell sharply initially on Friday but ended the day down only 5% to $25.65.
January 27, 2003
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