Joining the list of third quarter 2000 earnings success stories,Williams reported its third quarter net income more than quadrupledover last year’s figure for the same time period, from $28.1million ($0.06 per share) to $121.1 million ($0.27 per share). Thecompany attributed the growth to its fourth successive quarter ofyear-over-year earnings improvement within its energy businesses.

Williams also reported net income of $572.6 million ($1.28 pershare) for the first nine months of 2000, compared to $99.1 million($0.22 per share) for the same period a year ago.

“The earnings growth is being driven largely by our electricpower marketing and trading business, the benefit of higher energycommodity prices and greater productive capacity fueled by thecontinuing investment in the growth of our company,” said Keith E.Bailey, CEO of Williams.

The company’s energy services segment showed the greatestprofit, as it rose from 155.2 million for the third quarter 1999 to$311.5 million for the third quarter 2000. The growth was primarilyattributed to a $133.2 million increase in energy marketing andtrading business. Williams also pointed to an increase in naturalgas liquids margins and volumes, and higher natural gas productionprices. Segment profit for the first nine months of 2000 whencompared to the same period of time a year ago reflected the growthfrom $386.2 million to $928.2 million.

Williams’ gas pipeline segment also improved on last year’sthird quarter due primarily to earnings contribution from jointventure investments made since the third quarter of 1999 and highertransportation and storage revenues. The segments profit rose from$142.7 million to $153.4 million.

The company’s communications division continued to lose money asit absorbs the ongoing costs of building and staffingCommunications’ new broadband network company and suffers lower newsystem sales revenues in Solutions. The division recorded a $119.9million loss, compared with a loss of $81.7 million for the samequarter of 1999. However, The first nine months of 2000 did fairbetter than the equivalent time period last year by recording asegment loss of $75.9 million, compared to last year’s loss of$209.3 million.

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