Dominion Resources , owner of Virginia's largest utility, warned last week that earnings per share in 2003 could fall below current estimates. That's because the company plans to issue more stock to strengthen the balance sheet. While this should have been welcome news to Dominion bondholders, they weren't impressed. The earnings warning Monday came exactly one week after Dominion sold $520 million of 10-year senior notes to corporate bond investors. The bond deal, in turn, came only four trading days after Dominion had told a roomful of analysts and investors at the Lehman Brothers Fall Energy conference that the company projected a 7% earnings increase in 2003. Dominion now says it expects 2003 earnings to be flat to 4% higher than in 2002. The new bonds, priced at 1.7 percentage points over comparable Treasuries, at first were well received by the market, rising a tenth of a percentage point in price. But after the earnings news, they fell by 0.15 of a percentage point. The timing of the corporate-bond deal and the earnings
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