Edison International Reports Strong 2007 Operating Performance

Business Wire, Feb 27, 2008

ROSEMEAD, Calif. -- Edison International (NYSE:EIX):

* 2007 GAAP earnings were $3.33 per share compared to $3.58 per share in 2006.

* Excluding non-core items, 2007 core earnings increased 20 percent to $3.69 per share from $3.07 per share last year, reflecting strong operating performance at Southern California Edison (SCE) and Edison Mission Group (EMG).

* EMG's May 2007 $2.7 billion debt restructuring, which extended debt maturities at attractive pricing and terms, largely drove the 2007 non-core charge of $0.36 per share, resulting in the difference between GAAP and core earnings. Non-core items were a positive $0.51 per share in 2006.

* Fourth quarter 2007 GAAP earnings were $0.64 per share versus $0.87 per share in the prior year. Core earnings were $0.65 per share in both periods, and exclude non-core items of $(0.01) per share in 2007 and $0.22 per share in 2006.

* The company announced 2008 earnings guidance of $3.61 - $4.01 per share.

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Note: GAAP earnings refers to net income and GAAP earnings per share refers to basic earnings per share throughout this release. Core earnings is a non-GAAP financial measure; see reconciliation of core earnings to GAAP earnings and reconciliation of core earnings guidance to GAAP earnings guidance.

Edison International (NYSE:EIX) today reported 2007 earnings of $3.33 per share. Excluding non-core items, 2007 core earnings were $3.69 per share, up 20 percent compared with $3.07 per share last year. This increase was driven mainly by higher energy margins at EMG and solid operating results at SCE.

"Edison International performed well in 2007, reflecting completion of record utility infrastructure improvements and strong performance in our competitive power generation business," said John Bryson, chairman and CEO. "During the year, our team also significantly moved forward our leading national positions in advanced smart grid and meter technologies, energy efficiency, and renewable energy."

FOURTH QUARTER EARNINGS DETAIL

Fourth quarter 2007 GAAP earnings were $0.64 per share, compared to $0.87 in the fourth quarter of 2006 as the result of non-core items in the fourth quarter of last year. Excluding non-core items, fourth quarter core earnings were $0.65 per share, unchanged from the same period a year ago, as higher earnings at SCE were offset by lower results at EMG.

Earnings from Continuing Operations

SCE fourth quarter 2007 earnings from continuing operations were $0.37 per share compared to earnings of $0.48 per share in the same period last year, primarily from the favorable resolution of a state tax issue in the 2006 period. Excluding 2006 non-core benefits, SCE's core earnings increased $0.05 per share to $0.37 per share. This increase was primarily due to settlement of a tariff dispute.

EMG fourth quarter 2007 earnings from continuing operations were $0.30 per share compared to $0.35 per share in the same period last year. Excluding non-core items, EMG's core earnings were $0.30 per share compared to $0.36 per share a year earlier. The decrease was primarily due to lower earnings from Edison Capital and higher EMG corporate costs, partially offset by lower interest expense and higher trading margin.

Results of Discontinued Operations

Edison International's loss from discontinued operations was $0.01 per share in the fourth quarter of 2007 compared to earnings of $0.07 per share in the fourth quarter of 2006. Discontinued operations relate to adjustments resulting from the sale of EMG's former international projects.

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1 See Use of Non-GAAP Financial Measures below. The impact of participating securities is included in EIX parent company and other and was $(0.01) and $(0.01) per share for the quarter ended December 31, 2007 and 2006, respectively.

FULL-YEAR EARNINGS DETAIL

Earnings from Continuing Operations

SCE's earnings from continuing operations in 2007 were $2.17 per share compared with $2.38 per share a year ago. SCE's 2007 results include a non-core tax benefit of $0.10 per share primarily related to the income tax treatment of certain costs associated with environmental remediation. SCE's 2006 results include $0.49 per share in benefits related primarily to favorable resolution of tax and regulatory matters and generator settlements. Excluding these non-core items, SCE's core earnings in 2007 were $2.07 per share, compared with $1.89 per share in 2006. The increase is mainly due to higher operating margin, lower income taxes, and the tariff settlement, partially offset by higher net interest expense.

EMG's earnings from continuing operations in 2007 were $1.27 per share compared with $1.02 per share in 2006. Both 2007 and 2006 results were impacted by non-core early debt extinguishment costs. Excluding non-core items, EMG's core earnings in 2007 were $1.72 per share compared with $1.30 per share in 2006. This increase primarily reflects higher operating income at Midwest Generation and Homer City, lower interest expense, and higher project income and trading margin, partially offset by higher development and other corporate costs and lower earnings from Edison Capital.