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FirstEnergy Increases Dividend 10%
"AKRON, Ohio -- Directors of FirstEnergy Corp. declared a quarterly dividend of 41.25 cents per share of outstanding common stock at a special meeting yesterday -- a 10% increase over the previous quarterly rate. The board also adopted a dividend policy that will target sustainable annual dividend increases after 2005 that generally reflect an annual growth rate within the range of 4% to 5% and an earnings payout ratio generally within the range of 50% to 60%. The increased dividend will be payable March 1, 2005, to shareholders of record as of Feb. 7, 2005. With the increase, the new indicated annual dividend would be $1.65 per share. This is the company's first increase since it was formed in 1997, when the dividend was set at $1.50 per share."As a result of our efforts to reduce debt, control costs, and enhance cash flow, we are now able to provide a greater return on our shareholders' investment and a plan for enhancing that return in the future," said Anthony J. Alexander, president and chief executive officer. "This action underscores the board's confidence in our prospects for long-term success."Officials also announced earnings guidance for 2005 of $2.70 to $2.85 per share of common stock, which reflects anticipated growth in the company's energy delivery business, increased generation output and margins, and a return to normal weather. The earnings estimate also incorporates increased costs associated with three planned nuclear unit outages, as well as increased Ohio transition cost amortization.The company expects to generate net cash from operating activities in excess of $2 billion in 2005.Visit FirstEnergy Corp.: www.firstenergycorp.com"