PPL posts steep drop in 3Q earnings

ALLENTOWN, Pa. (AP) — Energy and utility holding company PPL Corp. posted dramatically lower third-quarter earnings Thursday as charges related to economic hedges and income taxes hurt its performance.

Net income plunged to $20 million, or 5 cents per share, for the July-September period from $203 million, or 54 cents per share, during the same period a year earlier.

The latest results include charges totaling 47 cents per share tied to economic hedges and an accounting change for certain expenditures for income tax purposes. That compares with credits totaling 9 cents per share a year earlier.

Excluding one-time items, PPL's earnings rose to $195 million, or 52 cents per share, from $168 million, or 45 cents per share.

Revenue fell 39 percent to $1.81 billion from $2.97 billion.

Analysts on average expected a profit of 45 cents per share on revenue of $2.99 billion, according to a survey by Thomson Reuters. Analyst estimates generally exclude one-time items.

PPL reaffirmed its 2009 forecast of $1.60 to $1.90 per share in operating profit and 84 cents to $1.14 per share in net income. Analysts expect a profit of $1.75 per share.

PPL also reiterated a 2010 earnings forecast of $3.10 to $3.50 per share. Analystsare looking for $3.29 per share.

"We expect the significant increase in earnings that we forecast for 2010 to come almost entirely from increased margins in the company's supply business," James H. Miller, PPL's chairman, president and chief executive, said in a statement.

Shares of PPL rose 34 cents, or 1.2 percent, to $29.82 in afternoon trading.