Xcel Energy 3Q Profit Down 0.9% As Cooler Temps Hurt Demand
DOW JONES NEWSWIRES
Xcel Energy Inc.'s (XEL) third-quarter profit dipped 0.9% as the company saw
lower electricity sales resulting from cooler temperatures as well as higher
costs.
The company's profits have been affected less than most by the recession, as
demand weakness isn't as prevalent in the Western and Midwestern states it
serves. But cooler-than-expected temperatures across the country during the
quarter, as well as lowered natural-gas prices, have hamstrung several
utilities' third-quarter earnings.
The electric and natural-gas utility reported earnings of $221 million, or 48
cents a share, down from $223 million, or 51 cents, a year earlier. Revenue fell
19% to $2.31 billion.
Analysts polled by Thomson Reuters had most recently forecast earnings of 50
cents on $3.01 billion in sales.
Operating margin rose to 20.1% from 15.7% on sharply lower fuel costs.
Electric revenue, which makes up the majority of the company's business,
slumped 17%, while natural-gas revenue declined 35%.
Looking ahead, Xcel expects its full-year earnings to be "near the midpoint"
of the company's guidance of $1.45 to $1.55 a share, Chairman and Chief
Executive Richard C. Kelly said.
Shares closed at $19.23 Wednesday and didn't trade premarket.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@
dowjones.com;
(END) Dow Jones Newswires
10-29-090741ET
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