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Duke 3Q profit falls, raises year target
November 02, 2007: 06:59 PM EST
Nov. 2, 2007 (Thomson Financial delivered by Newstex) --
CHARLOTTE, N.C. (AP) - Duke Energy Corp. (NYSE:DUK PRA) (NYSE:DUK) , one of the nation's largest electric power companies, said Friday its third-quarter profit fell 20 percent, reflecting the spin-off of its natural gas operations.
But the Charlotte-based company, which serves about 4 million customers in the Midwest and the Carolinas, said it expects to surpass its earnings target for the full year.
Its shares rose 21 cents to close at $19.03 Friday.
Duke earned $607 million, or 48 cents per share, in the three months ended Sept. 30, down from $763 million, or 60 cents per share, in the same period in 2006 when results included the natural gas unit.
Excluding special items and discontinued operations, earnings were 48 cents per share, up from 29 cents per share a year ago.
Analysts surveyed by Thomson Financial forecast a profit of 39 cents per share. The estimates usually exclude one-time items.
Revenue rose 16 percent to $3.82 billion in the quarter from $3.28 billion a year earlier. Analysts expected revenue of $3.43 billion.
The company's 2007 earnings will 'finish well above' its target $1.15 per share, Duke Energy Chairman and Chief Executive James E. Rogers said in a statement accompanying the report
Analysts polled by Thomson Financial expect the company to earn $1.18 per share this year.
Duke Energy spun off its natural gas unit, now trading as Spectra Energy Corp. (NYSE:SE) , to its shareholders in January. Last year, Duke purchased the power company Cinergy Corp.
For the third quarter, Duke Energy's franchised electric and gas unit posted an increase in earnings, mainly driven by hotter than normal weather during the period, the completion of rate credits related to the Cinergy merger and additional long-term wholesale contracts. The company's commercial power segment also posted higher results brought on by favorable weather.
Duke Energy International posted an increase in earnings, reflecting favorable pricing in Latin America.
'We had a strong quarter,' Rogers said in an interview. 'Moving forward, we need to continue to keep tight controls on our costs.'
Duke continues to work through several proposals with regulators concerning rate cases, building and clean-air permits and energy efficiency.
The company expects decisions in the coming months on two rate increase cases pending in North Carolina and Ohio. Duke Energy agreed earlier this month to cut rates in North Carolina, a reversal of its request last summer to raise rates. Ohio legislators are negotiating with Duke and other utilities to develop a rate framework for after the state's rate stabilization plan expires at the end of 2008.
Duke Energy also has proposed an advanced coal-fired plant in North Carolina, a nuclear plant in South Carolina and a 'clean-coal' plant in Indiana.
The company also has filed plans for its 'Save-a-Watt' program, which would lower rates for consumers who conserve energy and compensate the company for reductions in energy use.
'We are expecting a lot of regulation outcome in the fourth quarter,' Rogers said.
Duke has about 36,000 megawatts of electric generating capacity in the Midwest and the Carolinas and more than 4,000 megawatts of electric generation in Latin America.
For the first nine months of the year, Duke Energy reported earnings of $1.26 billion, or 99 cents per share, compared with $1.48 billion, or $1.27 per share, in 2006. Revenue rose to $9.95 billion from $7.8 billion a year earlier.
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-20705772.htm
November 02, 2007: 06:59 PM EST
Nov. 2, 2007 (Thomson Financial delivered by Newstex) --
CHARLOTTE, N.C. (AP) - Duke Energy Corp. (NYSE:DUK PRA) (NYSE:DUK) , one of the nation's largest electric power companies, said Friday its third-quarter profit fell 20 percent, reflecting the spin-off of its natural gas operations.
But the Charlotte-based company, which serves about 4 million customers in the Midwest and the Carolinas, said it expects to surpass its earnings target for the full year.
Its shares rose 21 cents to close at $19.03 Friday.
Duke earned $607 million, or 48 cents per share, in the three months ended Sept. 30, down from $763 million, or 60 cents per share, in the same period in 2006 when results included the natural gas unit.
Excluding special items and discontinued operations, earnings were 48 cents per share, up from 29 cents per share a year ago.
Analysts surveyed by Thomson Financial forecast a profit of 39 cents per share. The estimates usually exclude one-time items.
Revenue rose 16 percent to $3.82 billion in the quarter from $3.28 billion a year earlier. Analysts expected revenue of $3.43 billion.
The company's 2007 earnings will 'finish well above' its target $1.15 per share, Duke Energy Chairman and Chief Executive James E. Rogers said in a statement accompanying the report
Analysts polled by Thomson Financial expect the company to earn $1.18 per share this year.
Duke Energy spun off its natural gas unit, now trading as Spectra Energy Corp. (NYSE:SE) , to its shareholders in January. Last year, Duke purchased the power company Cinergy Corp.
For the third quarter, Duke Energy's franchised electric and gas unit posted an increase in earnings, mainly driven by hotter than normal weather during the period, the completion of rate credits related to the Cinergy merger and additional long-term wholesale contracts. The company's commercial power segment also posted higher results brought on by favorable weather.
Duke Energy International posted an increase in earnings, reflecting favorable pricing in Latin America.
'We had a strong quarter,' Rogers said in an interview. 'Moving forward, we need to continue to keep tight controls on our costs.'
Duke continues to work through several proposals with regulators concerning rate cases, building and clean-air permits and energy efficiency.
The company expects decisions in the coming months on two rate increase cases pending in North Carolina and Ohio. Duke Energy agreed earlier this month to cut rates in North Carolina, a reversal of its request last summer to raise rates. Ohio legislators are negotiating with Duke and other utilities to develop a rate framework for after the state's rate stabilization plan expires at the end of 2008.
Duke Energy also has proposed an advanced coal-fired plant in North Carolina, a nuclear plant in South Carolina and a 'clean-coal' plant in Indiana.
The company also has filed plans for its 'Save-a-Watt' program, which would lower rates for consumers who conserve energy and compensate the company for reductions in energy use.
'We are expecting a lot of regulation outcome in the fourth quarter,' Rogers said.
Duke has about 36,000 megawatts of electric generating capacity in the Midwest and the Carolinas and more than 4,000 megawatts of electric generation in Latin America.
For the first nine months of the year, Duke Energy reported earnings of $1.26 billion, or 99 cents per share, compared with $1.48 billion, or $1.27 per share, in 2006. Revenue rose to $9.95 billion from $7.8 billion a year earlier.
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-20705772.htm
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