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For the first quarter, net earnings of Consolidated Edison plunged 40.6% to $180 million or $0.66 per share from $303 million or $1.11 per share in the same quarter a year ago.
Quarterly results reflect a loss from competitive energy business due to net mark-to-market effects amounting to $34 million or $0.12 per share, compared to a gain of $33 million or $0.12 per share in the prior year quarter. Mark-to-market or fair value accounting refers to the accounting standards of assigning a value to assets of the company based on the current market price.
Results also reflect changes in rate plans including lower allowed returns on equity and additional revenues designed to recover increases in certain operations and maintenance expenses, depreciation and property taxes, and interest charges.
Excluding items, earnings from ongoing operations were $214 million or $0.78 per share, down from $237 million or $0.87 per share in the year-earlier quarter.
On average, nine analysts polled by Thomson Reuters expected earnings of $0.86 per share for the quarter. Analysts' estimate typically excludes one-time items.
Kevin Burke President and Chief Executive Officer said, "Our first quarter results were in line with our expectations, which reflect a lower allowed return on equity for Con Edison of New York's electric service."
In the sequentially preceding fourth quarter, profit of Consolidated Edison dropped to $160 million or $0.58 per share on mark-to-market losses. Revenues were also down at $1.99 billion, compared to $3.23 billion in the same quarter last year.
Among others in the industry, public utility holding company Ameren Corp. (AEE | Quote | Chart | News | PowerRating) reported a marginal rise in profit to $141 million or $0.66 per share, driven by higher net realized mark-to-market gains and lower costs. Total operating revenues, however, were down at $1.92 billion, compared to $2.08 billion in the same quarter a year ago.
For the quarter under review, Consolidated Edison said its operations and maintenance expenses were higher, compared to 2008, due to higher costs. Depreciation and property taxes also increased from the prior year reflecting primarily the impact of increased capital expenditures.
On April 7, 2009 brokerage Credit Suisse downgraded Consolidated Edison shares to 'Neutral' from 'Outperform,' with a mean target of $37.56.
ED is currently trading at $37.12, down $0.01 or $0.03%, on a volume of 0.56 million shares. In the last 52-week period, the stock traded in the range of $32.56 to $46.39, on a three-month average volume of 2.44 million shares.
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