Utility services holding company Exelon Corp. (EXC) on Friday reported a 70 percent fall in profit for the first quarter, reflecting lower earnings at its generation and PECO segments. Warmer than normal weather as well as higher costs and expenses negatively impacted results for the quarter. Adjusted earnings per share also declined, but beat analysts' estimates.
Christopher Crane, president and CEO of Exelon said, "As expected, our lower operating earnings for first quarter 2012 reflected unfavorable market factors and mild weather. However, I am pleased with our continued strong operational performance, such as the 93.6 percent capacity factor achieved by our nuclear operations."
Crane also announced the successful closing of the merger with Constellation Energy on March 12. In April last year, Exelon and Constellation Energy agreed to combine in a stock-for-stock transaction then valued at $38.59 per share or $7.9 billion.
The decline in Exelon's adjusted earnings for the quarter reflects the effect on energy margins at Exelon Generation Co. of decreased capacity pricing as well as higher operating and maintenance costs.
In addition, unfavorable weather in the service territories of PECO Energy Co. and Commonwealth Edison Co., and increased depreciation and amortization expense also negatively impacted adjusted earnings for the quarter.
Net income at the company's generation segment dropped 66 percent from the prior-year period to $168 million, while Commonwealth Edison's net income rose 26 percent to $87 million on increased distribution revenue.
PECO net income declined 23 percent to $96 million, reflecting the effect of unfavorable weather in its service territory.
Chicago, Illinois-based Exelon's net income for the first quarter was $200 million or $0.28 per share, down from $668 million or $1.01 per share in the year-ago period.
Adjusted net income declined to $603 million or $0.85 per share from $778 million or $1.17 in the prior-year quarter.
On average, 9 analysts polled by Thomson Reuters expected the company to report earnings of $0.81 per share. Analysts' estimates typically exclude special items.
Operating revenue for the quarter declined 5 percent to $4.69 billion from $4.96 billion in the prior-year quarter. Analysts had a consensus revenue estimate of $7.67 billion.
EXC closed Thursday's trading at $38.82, down $0.46 on a volume of 5.71 million shares.
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