BALTIMORE, MARYLAND, January 10, 2002 -- The Board of Directors of The Adams Express Company declared a dividend and announced the Fund's performance in 2001.
DIVIDEND DECLARED
Adams Express declared a dividend of $.08 per share, payable March 1, 2002, to stockholders of record, February 19, 2002. The $.08 consists of $.01 of investment income from 2002, and $.01 investment income, $.03 of short-term capital gain and $.03 of long-term capital gain all realized in 2001.
2001 PERFORMANCE
After outperforming both the Standard & Poor's 500 Index and the Dow Jones Industrial Average in 1999 and 2000, the Fund's performance significantly trailed the returns of the S & P 500 and the Dow Jones in 2001. For the twelve months ended December 31, the total return on Adams Express' net asset value, after adjusting for income dividends as well as capital gains distributions paid, was -24.7 percent. The Fund's return based on market price was also -24.7 percent. Comparable figures for the S & P 500 and the Dow Jones were -11.8 percent and -5.6 percent, respectively.
The Company's disappointing performance resulted largely from the substantial drop in the value of the technology and telecommunications services holdings in the portfolio, as well as the generally poor performance turned in by the large capitalization, non-cyclical growth stocks in which much of the Fund's holdings were invested. Doug Ober, Chairman and CEO of Adams Express, made the following observation for 2002: "Though the Adams Express portfolio provided a large negative return in 2001, we are confident that the companies represented in the portfolio will enjoy reasonable growth as the economy recovers. Their financial condition remains strong and therefore over time they will be able to take advantage of strengthening demand to best their weaker competitors and take market share." He cited top 10 holdings of General Electric, Cisco and SBC Communications as evidence of the quality names held by the Fund that underperformed the market last year.
NET ASSET VALUE ANNOUNCED
The net asset value of Adams Express at the end of 2001 is compared with the prior year in the following table:
12/31/01 |
12/31/00 |
|
Net assets |
$1,368,366,316 |
$1,951,562,978 |
Shares outstanding |
85,233,262 |
82,292,262 |
Net assets per share |
$16.05* |
$23.72 |
*After capital gain distribution of $1.39 per share paid in 2001.
PRINCIPAL CHANGES IN PORTFOLIO DURING FOURTH QUARTER
During the three months ended December 31, 2001, Adams Express added two new names to its investment list with the purchases of Enzon, Inc. and Safeway Inc. The Company increased its holdings in Bristol-Myers Squibb Co., Hershey Foods Corp., and Pfizer Inc. Nine holdings were eliminated from the investment list with the sales of American Tower Corp. 5.00% Conv. Notes due 2010, Annuity & Life Re (Holdings), Ltd., Baxter International Inc., Calpine Capital Trust 5.75% Conv. Pfd. HIGH TIDES, Enron Corp., Mead Corp., Orion Power Holdings, Inc., QRS Corp., and Williams Companies, Inc. The Company reduced its holdings in Elan Corp., plc ADR, Genentech, Inc., and Nokia Corp. ADR.
The Annual Report will be released on or about January 22, 2002.
The Adams Express Company is a Baltimore-based closed-end investment company. It is traded on the New York Stock Exchange and Pacific Exchange, and its symbol is ADX.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities and Exchange Act of 1934. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Several factors that could materially affect the Company's actual results are the performance of the portfolio of stocks held by the Fund, the conditions in the U.S. and international financial markets, the price at which shares of the Fund will trade in the public markets, and other factors discussed in the Company's periodic filings with the Securities and Exchange Commission.
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For further information please contact:
Joseph M. Truta, President
Lawrence L. Hooper, Jr., Vice President, Secretary & General Counsel
410-752-5900 or 800-638-2479
E-mail: contact@adamsexpress.com
Website: www.adamsexpress.com
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