Power Firms Take Body Blow From Slower Economy
Dow Jones & Company,
> Inc. - Apr 29
>
> Major power companies took a body blow from the slower economy
> according to fresh financial updates on Wednesday from some of the
> largest producers of electricity in the U.S.
>
> The Southern Co. (SO) said first-quarter net income fell a hefty
> 65% to $125.7 million, or 16 cents a share, from $359.2 million, or 47
> cents a share, in the year-ago period.
>
> The Atlanta-based big cap electric-power firm earned 42 cents a
> share excluding items, down from 47 cents a share in the year-ago
> period.
>
> Revenue stayed about flat at $3.67 billion. Analysts expected
> earnings of 41 cents a share, according to a survey by FactSet
> Research.
>
> "As a result of the recession, electricity sales were negatively
> impacted, especially industrial sales," Southern Co. said. The company
> said it increased investment in environmental, transmission and
> distribution equipment.
>
> CenterPoint Energy Inc. (CNP) said first-quarter net income fell
> 45% to $67 million, or 19 cents a share, from $122 million, or 36
> cents a share, in the year-ago period.
>
> Operating income fell to $285 million from $336 million.
> Revenue fell
> to $2.77 billion from $3.36 billion.
>
> Analysts expected earnings of 22 cents a share on revenue of
> $3.19
> billion, according to a survey by FactSet Research.
>
> "While reduced deliveries at our electric utility also had a
> negative impact on our first-quarter earnings, our gas utilities,
> interstate pipelines, field services and competitive gas sales and
> services units turned in solid performances," the Houston power
> company said.
>
> "We continue to believe that the overall fundamentals of our
> balanced portfolio of electric and natural-gas businesses remain
> strong and position us well for the future."
>
> CenterPoint Energy reaffirmed its 2009 earnings guidance of
> $1.05 to
> $1.15 per share.
>
> Meanwhile on Tuesday, FPL Group Inc. (FPL) shares jumped 6% after
> it said its first-quarter profit rose to $364 million, or 90 cents a
> share, compared to $249 million, or 62 cents a share.
>
> First-quarter revenue rose to $3.71 billion, from $3.43 billion a
> year ago. Analysts polled by Thomson Reuters had expected the firm to
> earn 77 cents a share.
> Inc. - Apr 29
>
> Major power companies took a body blow from the slower economy
> according to fresh financial updates on Wednesday from some of the
> largest producers of electricity in the U.S.
>
> The Southern Co. (SO) said first-quarter net income fell a hefty
> 65% to $125.7 million, or 16 cents a share, from $359.2 million, or 47
> cents a share, in the year-ago period.
>
> The Atlanta-based big cap electric-power firm earned 42 cents a
> share excluding items, down from 47 cents a share in the year-ago
> period.
>
> Revenue stayed about flat at $3.67 billion. Analysts expected
> earnings of 41 cents a share, according to a survey by FactSet
> Research.
>
> "As a result of the recession, electricity sales were negatively
> impacted, especially industrial sales," Southern Co. said. The company
> said it increased investment in environmental, transmission and
> distribution equipment.
>
> CenterPoint Energy Inc. (CNP) said first-quarter net income fell
> 45% to $67 million, or 19 cents a share, from $122 million, or 36
> cents a share, in the year-ago period.
>
> Operating income fell to $285 million from $336 million.
> Revenue fell
> to $2.77 billion from $3.36 billion.
>
> Analysts expected earnings of 22 cents a share on revenue of
> $3.19
> billion, according to a survey by FactSet Research.
>
> "While reduced deliveries at our electric utility also had a
> negative impact on our first-quarter earnings, our gas utilities,
> interstate pipelines, field services and competitive gas sales and
> services units turned in solid performances," the Houston power
> company said.
>
> "We continue to believe that the overall fundamentals of our
> balanced portfolio of electric and natural-gas businesses remain
> strong and position us well for the future."
>
> CenterPoint Energy reaffirmed its 2009 earnings guidance of
> $1.05 to
> $1.15 per share.
>
> Meanwhile on Tuesday, FPL Group Inc. (FPL) shares jumped 6% after
> it said its first-quarter profit rose to $364 million, or 90 cents a
> share, compared to $249 million, or 62 cents a share.
>
> First-quarter revenue rose to $3.71 billion, from $3.43 billion a
> year ago. Analysts polled by Thomson Reuters had expected the firm to
> earn 77 cents a share.