Westar Announces Decline In 2nd Quarter Earnings

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WESTAR ENERGY ANNOUNCES DECLINE IN SECOND QUARTER EARNINGS

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Westar Energy, Inc. announced Friday earnings of $5.6 million, or $0.06 per share, for the second quarter 2008, compared with earnings of $32.5 million, or $0.36 per share, for the second quarter 2007.

The 83 percent decline in earnings for the quarter was due primarily to additional planned and unplanned extended maintenance outages at the company’s lower-cost power plants. Reduced plant availability stemming from maintenance outages caused a decrease in wholesale sales volumes and an increase in fuel and purchased power expense, thereby reducing wholesale sales and energy marketing margins, in addition to the higher direct maintenance expenses.

The company also said that earnings were affected by capital investments not yet reflected in the prices it charges customers and a $3.2 million refund obligation to one of its energy management customers. Per share results were also lower as a result of the company having issued additional shares to fund its capital investments.

Earnings for the six months ended June 30, 2008, were boosted by a one-time tax benefit recorded in the first quarter of $39.4 million, or $0.40 per share, resulting from the completion of a federal income tax audit covering multiple years. Without the tax benefit, earnings for the six months ended June 30, 2008 were $27.1 million, or $0.27 per share, also much lower than last year’s six months earnings of $62.4 million, or $0.70 per share. With the tax benefit, earnings for the six months ended June 30, 2008 were $66.5 million, or $0.67 per share.

For the full news release, click on the PDF above.

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Posted by: Newby Location: wichita on Aug 8, 2008 at 12:25 PM
And here they are trying to raise rates. Because 5.6 million profit isn't enough? The rich get richer and the poor stay poor with thinking like this!!

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Boeing Wichita Cutting 800 Positions

Posted By: carroll: alan- ur right. dun is dun. i'm glad i'm on the west side of oliver-- best place to be right now. i'm still on 3 day weeks as a result of the strike. i'm really cramped right now, but i support the east siders 100%! i'm not clear on what current bail outs has to do with 800 being laid off or what McCain has to do with contracts that expire. now i will agree that there are boobs in management. it's that way EVERYWHERE! it's called- promote the incompetent. so they don't hose up everything on the floor. where the real work and productivity happens. a thousand managers have no job with out 10,000 to manage. i've been a manager. everyone loves to blame management for all their woes-- it's cheap and easy. not all decisions are bad even if we don't like them. not all are wise, and proven so in the long run. i've got to work. I will decide what MY approach to today will be. life sux. get over it. get on with it. it'll get better.
Posted By: Alan: Jack, I must have hit a nerve? Most managers at Boeing and Spirit are incompetent fools that could not lead a fish to swim in water. It is because of these manager/CEO morons, that these companies, banks or whatever, are in the mess they are in.
Posted By: Alan: - Contrary to what some believe, the cut backs on the military programs at Boeing, have nothing to do with Spirit. Boeing is laying off because the contracts are FINISHED, COMPLETE, DONE. Has NOTHING to do with the strike. - And to Anonymous, if Boeing "commercial" cuts back, of course it will affect Spirit, what are you thinking, or are you? - When Boeing came out in the NEWS, and said they were thinking of dropping out of the bidding process, that pretty much summed it up for me. - Yes N, they are there comments, but they are based on nothing but ignorance, none of it is based on fact.
Posted By: jack: 1. I was against the first bailout of the financial companies. 2. I am against any other bailout plan. 3. Let the auto industry file bankruptcy to negate union contracts. 4. execs of failing companies should lose jobs or at least large part of salaries. 5. I believe current layoffs are due to economy in large part, but recent strikes have impact too. 6. Union members pay attention to item 3 above or you will be next. 7. Alan shut up! the reason people get promoted is becaues they show leadership skills & qualities you obviously do not have. You Alan are one of the sheeples who blindly follow the leader. You had better hope your leader (the union) are not lemmings.
Posted By: Annoyed: Gee, this wouldn't have a thing to do with Sen. McCain wanting to open the bidding for our Military Tanker to a foreign country. Or the fact that once Boeing cried foul and got it stopped the current administration wants to wait and let the new administration handle it. Or that the CEO's and other upper crust at Boeing want their bonuses and perks. Either the brain surgeons on this site can't understand the news or read the paper.
Posted By: Response to Anon: If you look at Japan, you will see that when companies start doing poorly, the executives take a decrease in pay because they are considered the responsible party. That's not the case in the USA. They start cutting the little guys here, then reward themselves for increasing profitablity with nice fat raises. I'm not a fan of unions, but I do realize they are NOT what is bringing down our industry. It is crappy management and shoddy accounting practices.
Posted By: Just an Observation: You guys are all correct!! It's those evil UNION guys making less than 100k a year sucking all the money out of the companies. It couldn't be all the CEO's, managers, supervisors and supervisors over supervisors bonuses, could it? Profits aren't going to be what they have been, so the only way these clowns are going to get the hefty bonuses they are used to is by cutting overhead. We all know the big dogs aren't going to get rid of themselves, so they boot the workers. They get a HUGE bonus and the remaining workers get MANDATORY OVERTIME. All the while the public p*** and moan about those evil unions.
Posted By: : So, Alan the Spirit worker: does this affect the commercial side "Boeing Co. has seen its orders peak and the number of commercial planes in its backlog will probably decline going forward." I
Posted By: Curious: Alan, When did Airbus officially get the bid? I thought Boeing lodged a complaint and it was still up in the air... Just curious.
Posted By: : Look at the quote in the story: "taking steps to restructure our business in order to lower our rates and become more affordable for customers." This IS about the bottom line. The price a customer pays for a product includes labor costs. Strikes cost millions. Unless the government bails out the auto industry, (a short term fix at best) labor unions there will be gone. One of the foreign companies will buy buildings and equipment for pennies on the dollar, capturing capacity and market share. They can take all the time they need, hire anyone they want, and in the meantime car prices go up, incentives go down, and spare parts are hard to come by. They have the operating capital to do it. Why? Because their current workforce strives for continuous improvement and cost reduction, instead of whining about their pay rate and haggling over details when they are already fairly compensated. Unless drastic changes are made, aircraft will soon be circling the drain as well. Wake up people!
Posted By: Deanna: It's a good thing they striked. They would have still had the layoffs so at least you stuck up for yourselves and got a more resonable contract.
Posted By: n: Boy, Alan seems to be the smart one out of the bunch. Using words like morons, stupidity, and idiots. Hey Alan why don't you post your comment and leave the insults out. Their not stupid or idiots or morons; it's their comments.
Posted By: n: I said when you were striking that you might win in the negotiations but that you'd lose in the long run and ah...I was so right, the layoff is the payoff for your greediness, I certainly hope that those being laid off are the ones that were on the picket line in the first place and not the ones that chose to work and not be greedy and wanting more. God sure works in mysterious ways to those not content with what they have.....Guess who is getting the last word...GOD!!!!
Posted By: Elaine: Of course, this is not good news but at least you get to work thru the holidays and you get a 60 day notice instead of just a few days.
Posted By: JD: "Alan", i dont know whether to say your comments are stupid or ignorant. If you think the layoffs have nothing to do with the strike, then you are just naive. Boeing and Spirit can make you beleive whatever they want to. But look at the facts, how can it not have to do with the strike.Think about it, you guys struck for more pay and they said ok. And now they are laying off obvisously because there is not enough money to keep the workforce where it is at now. Hmm to me that sounds like because you greedy employees wanted more and now they cant afford it. Just my opinion! So how about you look at the obvious instead of looking at things through you Boeing blinders. Way to go strikers now you can explain to your families why things are tight just like the other hard workers who got laid off because of your laziness. Best wishes to those families who had nothing to do with the strike and for the ones who did....well KARMA is a wonderful thing.
Posted By: Johnny B: See what that strike got you . Next time maybe you wont be so greedy . There is no such thing as job security anymore !!!!
Posted By: PJ: I do work for Spirit in Wichita. I also used to work for Boeing. As soon as the strike ended I told my wife "Here come the layoffs". It has happened every time there has been a strike at Boeing. Spirit immune to the layoffs plauging the industry? Dont bet on it. Everyday there are more and more people losing their jobs. That translates into less money for people to take that vacation to grandmas for Christmas, that weekend trip to Vegas, that....you get the picture. Less people flying hurts everyone. Right now Spirit is over built because of the strike. How much longer will management keep people on 3 days, when it is cheaper to lay us off so as not to pay for our benefits. If you're not a little anxious over this, then you must be living in a different world then the rest of us. This country hasn't seen anything yet, if congress doesn't help out the automakers. 2,000,000 unemployed is a lot of people. I'd rather see congress bail out the A/I then the Banking and Security industries.
Posted By: dc: Too bad to to read some comments in this section. Well, we have to admit and accept the truth that in business we can't guarantee it stays strong. Sometimes it happened like this that business turn down and many of the people getting their bread & butter from it, so it is so sad and depressing, right?..but let us think of wonderful thing and start seeking another job, i think there are still jobs around there that awaits you - don't lose the hope you know and be strong enough to face crisis like this and im sure you grow as well because this is life!
Posted By: Alan: Hey K, get a clue, because you do not have one! The military cut back at Boeing is NOT affecting Spirit. I suggest you get your facts straight before aimlessly flapping your gums.
Posted By: Anon: The United Auto Workers union has bankrupted the automobile industry, and has the companies so burdened with labor costs that they cannot possibly compete with Toyota, Volvo, Nissan, etc. The aircraft industry and the IAM would be smart to apply that lesson to the aviation industry.
Posted By: John: It still proves that the amount of morons that Wichita has. The layoffs have nothing to do with the strike. But every moron that thinks it does will have something stupid to say about it
Posted By: K: Hey alan, you genius my husband works there and was told this, i am very well aware boeing is the military area in wichita but apparently that does not matter. So before you spout your crap, don't forget others are in the front line of the layoffs and may actually know what they are talking about. Talk about being uneducated and calling the kettle black!
Posted By: Alan: If some of you idiots making these stupid comments, actually find your way onto the payroll of an aircraft company, and they, the company, find out that you really are extremely stupid, that can't understand or do your job, you will probably be made a manager. Boeing has used this technique forever, and Spirit is continuing the trend. You go boy, you go girl!!
Posted By: janet: Good going union. Protect your company rights and now because of your greed your people have no...Job. When will you learn that when you get greedy you lose. For all of you who said you were on strike to protect your family, you sure did. Hope you don't lose your home and car and everything you have because now you have NO JOB. You deserve it.
Posted By: Alan: The stupidity and ignorance runs deep on this comment section of KAKE. The layoffs have nothing to do with the recent strike. It has everything to do with a few military contracts concluding. The plan was to move the employees that were working on these contracts over to the new tanker program for the United States Air Force. But since our wonderful politicians decided to spend our hard earned tax dollars to pay Airbus to build the aircraft instead, these high skilled mod mechanics are now being laid off. You morons that make these totally uninformed comments amaze me, as you probably do others that read this section also. I can't decide if the fact that you are so severely uneducated, that you can not obtain a decent job other than flipping burgers at McDonalds or you are just plan stupid, and feel the need to lash out at persons that are considered skilled labor. And to the genius that thinks a military cutback will affect Spirit, why would it? They are military, we here at Spirit, are in the most part, commercial. Can some of you not read at all? Educate yourselves prior to making a fool of yourself, like making these half witted comments. If you are that stupid, at least try and learn to appear that you know what you are talking about, so far, most on here are failing, miserably.
Posted By: Kenny: I just told my wife after the strike, I said "Just wait, now that they are going back to work, boeing will layoff!" I love being right.
Posted By: Joy: Bet your glad you striked now huh?
Posted By: q: I only read that they are laying off in wichita. Will they be laying off in Seattle or any other place?
Posted By: K: Was told out of rumor that if Boeing lays off then Spirit will lay off too, just lovely for those that are still on 3 day work weeks out there, only to possibly get laid off after the 1st of the year.
Posted By: john: Wichita is soon to be the new Detroit in Kansas. The IAM does not know about people....only about greed. I would bet the laid off workers at Beechcraft, Cessna, and Boeing would take a wage cut over layoffs and losing their jobs any day...but thanks IAM...that is not an option. If the companies go bankrupt there will be no jobs for anyone. All of the older employees (IAM members) do not care...seniority makes their jobs safe...or so they think...WAKE UP YOU ARE NEXT! History will show unions to be the demise of american industry. And to think the engineers at Boeing want a 20% pay increase in their new contract? Whatever! Pay attention to Detroit...Wichita is next and the IAM is the issue along with greedy people!
Posted By: : HaHaHa to bad,good thing ya strike...........
Posted By: : It appears the strike for job security.. didn't work out that well.
Posted By: : WAY TO GO IAM!!! Let the Union revel in their victory. Wait victory implies a win - this doesn't look like a win to me....lol...lol...lol...;-)
Posted By: : Anyone want to take a back the strike that the Union just had. Part of the reason why 800 jobs are going to be gone.

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