TXU Corporation

home
energized
management's letter
company report
financial report
directors and officers
shareholder info
feedback
2001 Summary Annual Report backpage 1page 2page 3page 4next
This bar chart shows operating revenues by business segment. Statistics are rounded. 2001 operating revenues totaled $27.9 billion, with this breakdown by business segment: US Electric, $7.6 billion; US Energy, $5.6 billion; Europe, $12.7 billion; US Gas, $1.2 billion; Australia, $700 million; all other, $100 million. 2000 operating revenues totaled $22 billion, with this breakdown by business segment: US Electric, $7.5 billion; US Energy, $5.5 billion; Europe, $7 billion; US Gas, $1.1 billion; Australia, $700 million; all other, $200 million. 1999 operating revenues totaled $17.1 billion, with this breakdown by business segment: US Electric, $6.3 billion; US Energy, $3.1 billion; Europe, $6.1 billion; US Gas, $860 million; Australia, $680 million; all other, $140 million. This bar chart shows TXU's track record of financial success. Our return on equity, excluding unusual items, was 9.7% in 1998, 10.7% in 1999, 11.4% in 2000, and 12.9% in 2001. Our earnings per share, excluding unusual items, were $2.79 in 1998, $3.19 in 1999, $3.43 in 2000, and $3.78 in 2001.
This bar chart shows the number of customers in Europe, North America, and Australia. In 2001, customers totaled 10,803,000, with this breakdown: Europe, 5,668,000; North America, 4,175,000; Australia, 960,000. In 2000, customers totaled 10,531,000, with this breakdown: Europe, 5,485,000; North America, 4,110,000; Australia, 936,000. In 1999, customers totaled 8,676,000, with this breakdown: Europe, 3,736,000; North America, 4,019,000; Australia, 921,000. This bar chart shows natural gas sales to end users. Natural gas sales totaled 353 billion cubic feet in 2001, 317 billion cubic feet in 2000, and 294 billion cubic feet in 1999. This bar chart shows electric energy sales to end users. Electric energy sales totaled 161 terawatt-hours in 2001, 152 terawatt-hours in 2000, and 142 terawatt-hours in 1999.


ENHANCED BALANCE SHEET
Through asset sales and free cash flow, our debt-reduction program over the past two years has materially enhanced our balance sheet and credit quality. Since TXU implemented its redeployment program approximately two years ago, total asset sales have reached almost $6 billion, with divestitures announced in 2001 totaling $4.1 billion. Accomplished under favorable terms, these transactions better position the merchant energy portfolio, reduce debt levels, and improve interest coverage. They also provide capital to recycle into faster-growing opportunities. We will continue our debt-reduction program to facilitate additional growth and improved returns on capital.

The circumstances involved in the demise of Enron remind us all of the essential nature of sound business practices, time-honored principles, and a strong values system. As the facts regarding the collapse have come to light, I have been even prouder of the manner in which TXU is organized, staffed, and managed.

The effects of one of the biggest failures in American business history will be many. It seems clear that investors will attach more value to businesses that have a sound and consistent strategy, operate within proven competencies, demonstrate quality execution, practice timely and complete communications, and make direct and transparent disclosures. The very positive financial performance of TXU last year may be due in part to the credibility and reputation the company enjoys in the market. I cannot imagine a more valuable attribute, nor one that is more worthy of preserving.

TXU has stayed the strategic course to develop well-diversified, global operations. I am confident that TXU’s prudent and insightful approach makes it a sound investment with a sustainable growth prospect. Guided by our ethical core values, we have the right strategy and business model, exceptional skills, well-positioned assets, and steadfast commitment to deliver the greatest shareholder value as we serve our customers with products that enhance the quality of their lives.

At TXU, we achieved an outstanding year of transition because of the support and confidence of shareholders and the hard work and dedication of the employee family. I am grateful to you all.



Erle Nye, Chairman of the Board and Chief Executive
backpage 1page 2page 3page 4next