New book by Larry Connors Click here Improve your trading - See how
FirstEnergy on Tuesday reported earnings of $230 million, or 77 cents a share, on revenue of $3.4 billion.
Earnings were down 50.3 percent from $1.55 a share reported a year ago, the Akron utility company reported. Net income was down 51.2 percent from $471 million on revenue of $3.9 billion a year ago.
Third-quarter earnings included charges related to a tender offering and restructuring costs, FirstEnergy said.
Using a non-GAAP (generally accepted accounting principle) method, FirstEnergy said it earned $1.11 a share for the third quarter, down 30.6 percent from a year ago.
Total electric generation sales dropped 11 percent compared to a year ago. The company said the recessionary economy caused third-quarter generation output to drop to 17.5 million megawatt hours, down 4.7 million megawatt hours, or 21 percent, from a year ago.
The company's chief financial officer, Mark Clark, also said overall employment at FirstEnergy was down by about 1,000 people since the start of the year.
The company said 715 people -- 318 union and 397 non-union -- had accepted voluntary buyouts by a Sept. 16 deadline. FirstEnergy has operations in Ohio, Pennsylvania and New Jersey.
FirstEnergy also slightly reduced its full-year earnings guidance to $3.70 to $3.80 a share from its previous range of $3.70 to $3.85 a share.
Clark said the company will not be able to make up in the last three months of the year the lost revenue and earnings caused earlier in 2009 by the recession and mild summer.
Major customers such as steel makers didn't use as much electricity compared to a year ago, largely because of the economic downturn. And a relatively mild summer also lowered air-conditioning demand.
"It made sense to narrow our guidance range," Chief Executive Officer Tony Alexander told investors in a conference call.
Company executives are refining their outlook and assumptions for 2010 and will share their information in early December at an investors' conference, he said.
The economic outlook might be improving, as Alexander said there have been additional worker shifts added recently at several major industrial customers, including Ford, General Motors and others.
"We're seeing some fairly significant change at some of the local facilities," Alexander said.
Shares fell $1, or 2.2 percent, on Tuesday to $43.99. Shares are down 6 percent, including reinvested dividends, since Jan. 1 and are down less than 1 percent from a year ago.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.
To see more of the Akron Beacon Journal, or to subscribe to the newspaper, go to http://www.ohio.com. Copyright (c) 2009, The Akron Beacon Journal, Ohio Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
