American Electric Power (AEP) reined in its long-running profit
target for 2012 ahead of a meeting with investors, adding economic
challenges remain in the states where it operates.
The company, which is one of the largest U.S. electric
utilities, said it now expects a per-share profit of $3.05 to $3.25
for 2012. It had been targeting earnings of roughly $3.25 a share
since late 2010.
Chief Executive Nicholas K. Akins added the company expects 4%
to 6% earnings growth over the next few years, pointing to plans
for continued investment in its regulated operations and other
goals.
American Electric Power, which has utilities operations from
Texas to Ohio, has been anticipating a sluggish economic recovery
that could stretch over several years. The company on Friday said
the economic outlook in the 11 states where it operates remains
modest, with slight growth year-over-year expected in industrial
and commercial sectors and flat residential load.
The utility last month reported its fourth-quarter earnings rose
75% on stronger wholesale volume, though retail volume shrank.
Shares were recently up 13 cents to $39.50 in premarket trade.
The stock is down 4.7% since the start of the year through the
Thursday close.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207;
mia.lamar@dowjones.com