Akron-based FirstEnergy reporting improved numbers over the same period last year.
The utility says it had net income of $509 million dollars on overall revenue of $4.7 billion; that compares with $175 million and $3.7 billion for third quarter 2010. One of the big impacts came because of mergers with companies such as Allegheny Energy and a six percent boost in electricity used by industrial customers.
News release - FirstEnergy Corporation
FirstEnergy Corp. (NYSE: FE) today announced third quarter 2011 basic and diluted earnings of $1.34 per share of common stock on a non-GAAP* basis. These results exclude the impact of special items listed further below. This compares to basic and diluted non-GAAP earnings of $1.28 per share in the third quarter of 2010.
On a GAAP basis, third quarter 2011 basic and diluted earnings were $1.22 per share of common stock on net income of $509 million and revenue of $4.7 billion. Third quarter 2010 basic and diluted GAAP earnings were $0.59 per share on net income of $175 million, with revenue of $3.7 billion.
"During the third quarter we continued making steady progress toward our merger and financial targets, and our team remains focused on meeting its commitments and continuing our success," said FirstEnergy President and Chief Executive Officer Anthony J. Alexander. "Based on our strong third quarter results and our continued confidence in our business strategy, we are reaffirming 2011 non-GAAP earnings guidance of $3.30 to $3.50 per share, and 2012 and 2013 non-GAAP guidance of $3.20 to $3.50 per share."
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Third Quarter |
First Nine Months |
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2011 |
2010 |
2011 |
2010 |
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|
Basic Earnings Per Share (GAAP) |
$1.22 |
$0.59 |
$1.89 |
$1.97 |
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|
Excluding Special Items: |
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|
Regulatory Charges |
-- |
0.02 |
0.05 |
0.11 |
|||
|
Trust Securities Impairment |
0.01 |
-- |
0.03 |
0.04 |
|||
|
Income Tax Charge-Retiree Drug Change |
-- |
-- |
-- |
0.04 |
|||
|
Merger-Related Costs |
0.01 |
0.04 |
0.36 |
0.09 |
|||
|
Non-Core Asset Sales/Impairments |
0.02 |
-- |
0.08 |
0.02 |
|||
|
Mark-To-Market Adjustments |
0.01 |
0.03 |
0.06 |
0.06 |
|||
|
Merger Accounting-Commodity Contracts |
0.06 |
-- |
0.18 |
-- |
|||
|
Litigation Resolution |
0.01 |
-- |
0.06 |
(0.01) |
|||
|
Lake Plant Charges |
-- |
0.60 |
-- |
0.60 |
|||
|
Basic Earnings Per Share (Non-GAAP*) |
$1.34 |
$1.28 |
$2.71 |
$2.92 |
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Third quarter 2011 non-GAAP* results benefited from higher sales margins and the net accretion from the Allegheny merger, including the impact of shares issued in the merger. Higher operating costs, including outage-related costs associated with the nuclear and fossil generation fleet, and higher financing costs and depreciation expense held down the increase in third quarter earnings.
Distribution deliveries, excluding Allegheny Energy deliveries, increased 2 percent in the quarter. Usage by industrial customers increased 6 percent, as higher usage in the steel sector was partially offset by decreased demand in the automotive industry. Residential sales increased 1 percent, and commercial deliveries decreased slightly.
Sales margins for FirstEnergy Solutions increased compared to the third quarter of 2010 due to higher retail sales, the benefit of fuel-contract restructuring, increased capacity auction revenues, and lower purchased power costs.
For the first nine months of 2011, net income was $725 million, or basic earnings of $1.89 per share of common stock ($1.88 diluted), on revenue of $12.4 billion. This compares to 2010 net income of $580 million in the first nine months of the year, or basic earnings of $1.97 per share of common stock ($1.96 diluted), on revenue of $10.2 billion.
