By Steve Gelsi
NEW YORK (Dow Jones) -- 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.