Con Ed 3rd-quarter profit skyrockets 85 percent

NEW YORK (AP) — A sharp drop in the price of fuel boosted Consolidated Edison Inc.'s third quarter, helping the company posted an 85 percent profit leap.

The company, which provides power to New York City and nearby counties, said its net income rose to $336 million, or $1.22 per share, from $182 million, or 66 cents per share, in the 2008 quarter.

Adjusted for various items, including mark-to-market charges, the company posted earnings of $319 million, or $1.16 per share, compared with $269 million, or 98 cents per share, in 2008.

Mark-to-market is an accounting rule that requires companies to value assets at prices reflecting current market conditions. The company lost 6 cents per share from mark-to-market, compared with a gain of 32 cents per share in the year-ago quarter.

Analysts polled by Thomson Reuters, on average, expected profit of $1.04 per share. Analyst estimates typically exclude one-time items.

Revenue fell 10 percent to $3.49 billion, from $3.86 billion last year. Analysts forecast revenue of $3.59 billion.

Operating expenses dropped more than 15 percent to $3 billion from $3.55 billion last year. That reflected lower prices for purchased power, fuel, gas purchased for resale, offset by rising operations and maintenance costs.

The utility confirmed its previous forecast for full-year adjusted profit in a range of $3 to $3.20 per share. Analysts expect full-year profit of $3.10 per share, with estimates ranging from $3.05 to $3.15 per share.

Con Ed shares rose 17 cents to $40.85 morning trading.