Constellation Energy turns 3Q profit, ups outlook

posted: 25 DAYS 14 HOURS AGO

Text SizeAAA

BALTIMORE -Constellation Energy Group Inc. on Friday said it turned a profit in the third-quarter and raised its full-year earnings outlook.

In the most recent quarter, the utility said it lost fewer customers and significantly reduced fuel and energy costs, helping to fatten margins even as revenue declined.

"Our businesses delivered strong quarterly results and our nuclear and fossil fleets maintained top-tier reliability and operating performance," said Mayo Shattuck, the company's CEO.

For the three months ended Sept. 30, the Baltimore company posted a profit of $137.6 million, or 69 cents per share, compared with a loss of $225.7 million, or $1.27 per share, during the same period last year.

The results include losses from divested operations, merger termination and severance costs and other one-time charges. Excluding special items, the company's adjusted earnings rose to $1.23 per share, compared with adjusted earnings of 76 cents per share in the third-quarter of last year.

Analysts estimated a profit of $1.07 per share, on average. Analysts typically exclude one-time items.

Revenue declined 24 percent to $4.03 billion, down from $5.32 billion a year earlier. Analysts forecast, on average, revenue of $4.48 billion.

Citing strong third-quarter earnings and early indications that electricity demand is stabilizing in some markets, Constellation raised its full-year earnings forecast by 15 cents to between $3.25 per share and $3.45 per share. The company held to its 2010 profit outlook of $3.05 per share to $3.45 per share. Analysts expect 2009 and 2010 earnings of $3.10 per share and $3.22 per share, respectively.

Shares of the company closed at $31.13 on Thursday.

2009-10-30 08:28:22