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Chesapeake Utilities Corporation, based in Dover, Del., has announced the sale of the assets and operations of two of its seven water services businesses. These actions mark the company's first steps in the implementation of its plan to reassess its water services activities and take actions to improve returns from this business segment.
The sales of these operations are not expected to have a material impact on the company's results. Going forward, the sales are expected to reduce losses from this segment. Management continues to look at options for the remaining water services businesses, and is committed to improving the return from these operations.
On June 3, 2003, the company sold the assets of Absolute Water Care, Inc. based in Venice, Florida. This was followed by the sale of the assets of Sharp Water of Minnesota, Inc. on June 30. These sales are consistent with the company's strategy of improving corporate returns.
"Results from our water services business have been disappointing, and the actions announced today reflect our commitment to implement our strategy to improve the operational and financial performance of this business during 2003," stated John Schimkaitis, president and chief executive officer of Chesapeake Utilities.
"We continue to believe that strong performance and growth in our core energy operations and success in addressing the challenges in our water services business provide additional opportunities for improving returns going forward."