Wednesday February 6, 12:17 am Eastern Time

Reliant Delays 4th-Quarter Earnings

Energy Supplier Reliant Delays 4th-Quarter Earnings Release, Will Restate Other Earnings

HOUSTON (AP) -- Investors were jittery after energy company Reliant Resources Inc. [NYSE:RRI - news] said that it will restate its earnings for the second and third quarters of 2001 because accounting errors.

The company also said it will delay its fourth quarter earnings.

The announcement Tuesday sent shares of Houston-based Reliant downward, falling $1.87, or 13.5 percent, to $11.95 in trading on the New York Stock Exchange, as concerns of corporate accounting took deeper root on Wall Street.

The energy supplier, which was sold off in May by former parent Reliant Energy Inc. in a $1.5 billion public offering, said its internal accountants found errors in the way the company charted certain gas and power transaction.

Originally, the transactions were misclassified as cash flow hedges and needed to be included in the 2001 income statement, spokeswoman Sandy Fruhman said.

Reliant said the earnings for the second and third quarters would be restated by $100 million to $130 million. While those earnings previously had been anticipated for 2002 and 2003 and would have been reported then, the changes will not affect overall cash flow, the company said.

The power marketer also again lowered its 2002 earnings estimate -- to $1.80 from $2 -- after previously lowering its estimate from $2.15 to $2.

The Houston-based energy provider and marketer will release the amended data as soon as possible, Fruhman said. Fourth-quarter earnings had been scheduled for release Tuesday.

Reliant also said it won't sell its Western European trading assets because of the economic uncertainty and unacceptable offers.

Yahoo!

-- Anonymous, February 07, 2002