SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) December 3, 2002
Commission Registrant; State of Incorporation; I.R.S. Employer
File Number Address; and Telephone Number Identification No.
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333-21011 FIRSTENERGY CORP. 34-1843785
(An Ohio Corporation)
76 South Main Street
Akron, Ohio 44308
Telephone (800)736-3402
Item 9. Regulation FD Disclosure
On December 3, 2002, FirstEnergy Corp. (Company) updated its 2003
earnings guidance to $3.35 to $3.55 per share of common stock from the
previously announced range of $3.70 to $3.90 per share - primarily as a result
of an anticipated rise in non-cash pension and other post-employment benefit
costs, which could reduce 2003 earnings by approximately $0.30 per share
compared with 2002 costs. The revised guidance excludes the effect of the
Davis-Besse Nuclear Power Station outage.
The Company also revised its estimated annual earnings-per-share
growth rate to four to five percent, compared with the previous guidance of
seven to eight percent. The pension and post-employment benefit cost increases,
coupled with reduced opportunities in the competitive energy services sector,
contributed to the revised earnings-per-share growth rate.
The Company also expects free cash flow, after capital expenditures
and common stock dividends, to increase in 2003 to $800 million from the
estimated 2002 level of approximately $300 million, which will support
FirstEnergy's ongoing, aggressive debt-reduction program.
FirstEnergy Chairman and Chief Executive Officer H. Peter Burg and
Senior Vice President and Chief Financial Officer Richard H. Marsh will discuss
the Company's updated 2003 earnings guidance during its analyst conference on
December 4, 2002, in New York City. A live Webcast of their remarks, which
begins at approximately 8:00 a.m. Eastern time, will be available through
FirstEnergy's Investor Information Web site.
FirstEnergy also will provide an overview of its pension plan assets
and liabilities. FirstEnergy does not expect to be required to make a cash
contribution to its pension plan in 2002 or 2003. However, if the market value
of the Company's pension plan assets as of October 31, 2002, were to remain
unchanged by year-end, FirstEnergy would recognize a non-cash, after-tax charge
to common stockholders' equity of approximately $330 million to recognize a
minimum pension liability. This charge would not affect the Company's 2002 net
income.
The Company also will address the estimated effect of implementing on
January 1, 2003, Statement of Financial Accounting Standards No. 143, "Asset
Retirement Obligations." Adoption of this new standard should partially offset
the effect of recognizing a minimum pension liability because it is expected to
increase common stockholders' equity by approximately $140 million. The
cumulative effect of this accounting change - an increase of approximately $0.50
per share to the Company's 2003 net income - is not reflected in FirstEnergy's
2003 earnings guidance.
FirstEnergy Corp. is a registered public utility holding company
headquartered in Akron, Ohio. FirstEnergy subsidiaries and affiliates are
involved in the generation, transmission and distribution of electricity;
exploration and production of oil and natural gas; transmission and marketing of
natural gas; energy management and other energy-related services.
This Form 8-K includes forward-looking statements based on information
currently available to management. Such statements are subject to certain risks
and uncertainties. These statements typically contain, but are not limited to,
the terms "anticipate," "potential," "expect," "believe," "estimate" and similar
words. Actual results may differ materially due to the speed and nature of
increased competition and deregulation in the electric utility industry,
economic or weather conditions affecting future sales and margins, changes in
markets for energy services, changing energy market prices, legislative and
regulatory changes or approvals (including revised environmental requirements),
availability and cost of capital, inability to accomplish or realize anticipated
benefits of strategic goals and other similar factors.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
December 3, 2002
FIRSTENERGY CORP.
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Registrant
/s/ Harvey L. Wagner
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Harvey L. Wagner
Vice President, Controller
and Chief Accounting Officer