(RTTNews) - Electricity provider Wisconsin Energy Corp. (WEC: News ), Thursday reported a fall in its third quarter profit reflecting a sharp decline in the sales across segment. Further, the company reaffirmed full year 2009 earnings outlook. Separately, Wisconsin Energy announced its agreement with Cloverland Electric Cooperative to sell regulated utility subsidiary Edison Sault Electric company for $61.5 million.

Wisconsin's net income from continuing operations declined to $59 million or $0.50 per share from $77 million or $0.64 per share in the year-ago period.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter was $821.9 million, down from $851.5 million in the comparable quarter last year. Analysts expected revenue of $922.54 million for the quarter.

Total sales of electricity in the quarter declined by nearly 14.2% partially due to unusual cool summer weather reducing the use of air-conditioners.

The Milwaukee-based company said that for the third quarter usage of electricity for residential purpose fell by 10.2%, small commercial and industrial customers use of electricity dropped by 6.9% and its use by large commercial and industrial customers was down by 13.6%.

Operating income reported decreased to $104.9 million from $138.4 million in the year-ago period.
For the nine months, net income from continuing operations was $263.6 million or $2.24 per share, up from $257.8 million or $2.18 per share in the prior-year. Total operating revenue declined to $3.060 billion from $3.228 billion last year.

Looking ahead to the full year 2009, the company reaffirmed its earnings guidance in the range of $3.05 - $31.5 per share. Analysts currently anticipate the company to earn $3.09 per share.

In a separate annoucement, the company said it agreed to sell Edison Electric Company to Cloverland Electric for $61.5 million. As per the agreement Wisconsin Energy will retain the ownership share in American Transmission Company held by Edison Sault. Wisconsin Energy expect the combination to bring in efficiencies that benefit customers across the region of northern Michigan.

In order to assure reliable source of energy for Edison Sault's customers, the companies have agreed to extend wholesale power arrangement between Wisconsin Electric and Edison Sault by another 12 years to 2030.

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