Exelon said Friday that its second-quarter profit fell 12 percent as the weak economy cut into demand for electricity, and the power company issued a forecast for the next three months that came in below Wall Street estimates.
Chicago-based Exelon said it made $657 million, or 99 cents per share, for the quarter ended June 30 compared with profit of $748 million, or $1.13 per share, in the year-ago period. Revenue fell to $4.1 billion from $4.6 billion a year ago.
Including one-time charges and gains, Exelon said it made $683 million, or $1.03 per share, in the quarter.
Analysts surveyed by Thomson Reuters expected profit of 97 cents a share on revenue of $4.9 billion. Such estimates typically exclude such charges.
Shares fell 51 cents to $53.52.
The results were released three days after Exelon called off its bid to buy NRG Energy in a deal that would have created the nation's largest power generating company.
Exelon also reaffirmed its 2009 earnings guidance, saying it expects to make $4 to $4.30 per share after adjustments, including 90 cents to $1 in the third quarter. Wall Street is looking for profit of $4.12 per share and $1.05 in the third quarter.
"We delivered very good earnings in the second quarter despite the weak economy and lower demand," John Rowe, Exelon's chairman and CEO, said in a statement.
Exelon on Tuesday scrapped its $7.4 billion, all-stock proposal to buy Princeton, N.J.-based NRG Energy in a deal that would have created the nation's largest power generator with capability of serving 45 million homes. Exelon called off the bid after NRG shareholders rejected an Exelon proposal that would have expanded NRG's board, preferably with new and existing seats going to people that would support Exelon's buyout offer.
NRG Energy said the offer was too low.
Like other utilities, Exelon has been hurt by lower demand because of the economy. Exelon reported lower demand at its ComEd utility in the Chicago area and PECO in the Philadelphia area during the quarter also because of cooler weather.
Because of the weak economy, Exelon last month announced spending cuts that will achieve $350 million in operations and maintenance savings in 2010, a 3.5 percent reduction. The cuts included the elimination of 500 jobs.
Exelon shares fell 88 cents, or nearly 2 percent, to $53.15 in trading Friday morning. The shares have traded between $38.41 and $81.93 over the past year.
Year to date, Exelon reported profit of $1.4 billion, or $2.07 per share, compared with $1.3 billion, or $2.01 per share, in the first half of 2008. Discounting charges, Exelon would have made $2.24 per share in the first half of 2009 compared with $2.06 in the year-ago period.
Revenue fell to $8.9 billion from $9.3 billion.
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