DOW JONES NEWSWIRES
Northeast Utilities' (NU) third-quarter earnings rose 55% thanks
to better power sales, driven by hot temperatures and cost
management.
The company--which provides power to more than 2 million
customers in Connecticut, New Hampshire and Massachusetts--raised
its outlook for earnings this year by 15 cents a share to $2.10 to
$2.20.
In the most-recent period, electricity sales rose 6.5%, but were
down 4.4% when adjusted for weather changes. This summer, the
region suffered repeated heat waves, with temperatures soaring to
new records.
Like many power companies, Northeast's revenue dropped in the
economic downturn as demand declined. Chief Executive Charles
Shivery predicted this summer that the second quarter, which had
drops in both earnings and revenue, would mark an inflection point
for the company. He said two key distribution-rate cases were
resolved, which would accentuate benefits from cost management and
an improving sales outlook.
Earlier this month, Northeast agreed to merge with New England
utility Nstar (NST) for $4.3 billion in stock to form what the
companies called one of the biggest utilities in the U.S.
Northeast reported a profit of $100.5 million, or 57 cents a
share, compared with $64.8 million, or 37 cents a share, a year
earlier. Operating revenue decreased 4.8% to $1.24 billion.
Analysts surveyed by Thomson Reuters expected 54 cents a share
on revenue of $1.43 billion.
Total operating expenses slid 8.7%.
Northeast shares closed up 0.3% at $31.28 and weren't active in
after-hours trading. The stock, which was trading at its highest
level in more than two years during the regular session, has risen
21% so far this year.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com