) reported second-quarter 2013 earnings of 35 cents per share,
missing the Zacks Consensus Estimate by 5 cents as well as the
year-ago figure by 10.3%. The decline in earnings was primarily
due to an increase in share counts and higher depreciation and
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ALLETE posted revenues of $235.6 million, surpassing the Zacks
Consensus Estimate by $1.6 million. Quarterly revenues increased
9% year over year driven by increased revenues from the renewable
energy investments and year-over-year rise in total electricity
ALLETE's sales from the regulated utility operations stood at
$215.8 million, up 9.5% year over year. This was mainly driven by
an increase in sales at the residential, commercial, municipal
and industrial divisions and a rise in the other power suppliers'
In the quarter under review, total electricity sale volume rose
2.5% year over year to 3,223 million Kilowatt-hours.
Total operating expenses were $211.2 million in the second
quarter, up 9.4% year over year. A rise in costs of fuel and
purchased power, operating and maintenance expenses as well as
depreciation expenses led to the cost escalation.
ALLETE's operating income jumped 4.7% year over year to $24.4
million. Profit increased in consequence of a substantial
increase in the top line despite strong cost pressure.
The company's interest expenses were $12.8 million versus $10.1
million in the year-ago quarter.
ALLETE's cash and cash equivalents as of Jun 30, 2013 were $145
million versus $80.8 million as of Dec 31, 2012.
Long-term debt as of Jun 30, 2013 was $1,064.7 million compared
with $933.6 million at year-end 2012.
ALLETE reiterated its full year 2013 earnings expectation of
$2.58 - $2.78 per share taking into consideration strong
industrial demand, higher cost recovery revenue, increased
operating and maintenance expenses, depreciation and interest
expenses, rise in federal production tax credits and dilution
from equity issuances in the range 10 - 15 cents per share.
Other Company Releases
American Electric Power Co. Inc.
) posted second-quarter pro forma earnings per share of 73 cents,
missing the Zacks Consensus Estimate by 4 cents.
) announced second-quarter operating earnings of 53 cents per
share, missing the Zacks Consensus Estimate by a penny.
) reported second quarter operational earnings of $1.01 per
share, beating the Zacks Consensus Estimate by 3 cents.
ALLETE expects energy demand in the region to increase in the
near term primarily due to the commencement of numerous
large-scale industrial projects. We believe the improvement and
diversification of the generation capacity will enable the
company to meet higher demand, which will subsequently improve
its future performance. The company has also taken an initiative,
known as EnergyForward, to meet up Minnesota's renewable energy
standard of 25% renewable energy by 2025.
Duluth, Minn.-based ALLETE Inc. is a multi-service provider and
has operations in Florida, North Dakota and Wisconsin. It has a
wide array of businesses, starting from the supply of electricity
and water utility to automobile auction. The company currently
has a Zacks Rank #4 (Sell).