AES sells distribution businesses in Argentina to reduce presence in non-core markets, signs agreement to sell majority stake in combined cycle plant in Spain; subsidiary Brasiliana closes sale of telecom businesses in Brazil
Tracy McDonald
ARLINGTON, Va.
,
November 14, 2011
(press release)
–
The AES Corporation (NYSE: AES) today reported achieving another milestone in portfolio management activities. The Company is on track to meet 2011 Adjusted EPS, but Diluted Earnings per Share from Continuing Operations has been revised to reflect impacts of non-cash asset impairments recorded in the Third Quarter of 2011.
“As I mentioned on our recent earnings call, we’ve entered into an agreement to sell a majority stake in our Combined Cycle plant in Spain and Brasiliana closed the sale of its Telecom businesses in Brazil,” said Victoria D. Harker, Executive Vice President, Chief Financial Officer and President of Global Business Services. “Last week, we approved the sale of our Argentine distribution businesses, Edelap and Edes. In the aggregate, these were attractive opportunities to simplify our portfolio by reducing our presence in non-core markets or businesses.”
The Company also announced a revision to 2011 guidance for Diluted Earnings Per Share from Continuing Operations from a range of $0.93 to $0.99 to a range of $0.63 to $0.69, including the impacts of non-cash asset impairments recorded in the Third Quarter of 2011. By reducing its presence in non-core markets or businesses, AES is also moving toward an improving credit profile, as proceeds can be used to pay down debt. This is the case in Brazil, where the Company’s Brazilian subsidiary, Brasiliana, anticipates utilizing approximately $480 million of proceeds from the sale of its telecommunications businesses to repay expensive non-recourse debt.
About AES
The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 27 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 29,000 people is committed to operational excellence and meeting the world's changing power needs. Our 2010 revenues were $16 billion and we own and manage $41 billion in total assets. To learn more, please visit http://www.aes.com.
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