Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

AGL Resources Profit Surges; Stock Down On Weak Outlook - Update

2/6/2013 11:43 AM ET

Natural gas distributor AGL Resources Inc. (GAS: Quote), Wednesday reported a surge in fourth-quarter profit, reflecting the addition of Nicor businesses, warmer-than-normal weather and mark-to-market hedge movements. Results were also helped by lower merger-related charges, compared with last year.

Moving forward, the company provided a soft outlook for fiscal year 2013, citing weak market fundamentals at many of its unregulated subsidiaries and persistent inflationary pressures.

Shares of AGL Resources are down 4.6 percent in morning trade on the New York Stock Exchange.

Atlanta, Georgia-based AGL Resources engages in natural gas distribution, retail operations, wholesale services, midstream operations and cargo shipping. The company's results were buttressed by the December 2011 merger with Nicor Inc. that resulted in the creation of a leading natural gas distribution entity.

AGL Resources reported fourth-quarter net income of $98 million or $0.84 per share, compared with $33 million or $0.37 per share last year.

Results for the prior-year quarter included transaction costs of $0.57 per share related to the Nicor merger.

Excluding items, adjusted earnings for the quarter were $0.91 per share, compared with $.94 per share last year.

Operating revenues for the quarter sharply increased to $1.2 billion from $790 million a year ago.

For fiscal year 2013, AGL expects earnings of $2.50 to $2.70 per share on a consolidated basis, and $2.40 to $2.50 per share excluding wholesale services.

The company's stock is trading at $40.21, down $1.95 or 4.63%.

Register
To receive FREE breaking news email alerts for AGL Resources, Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After moving mostly higher in early trading on Wednesday, stocks have continued to perform well over the course of the session. While buying interest has waned since then open, the markets have maintained a positive bias on the day. Industrial production in the U.S. rose by more than expected in the month of March, the Federal Reserve revealed in a report on Wednesday, with the report also showing a notable upward revision to the pace of production growth in the previous month. The report said industrial production increased by 0.7 percent in March after surging up by an upwardly revised 1.2 percent in February. Housing starts in the U.S. showed a notable increase in the month of March, according to a report released by the Commerce Department on Wednesday, although starts still came in well below economist estimates. The report showed that housing starts climbed 2.8 percent to an annual rate of 946,000 in March from the revised February estimate of 920,000.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.