Friday, Allete Inc. (ALE)a diversified holding company in the automotive services sector, said its profit for the third-quarter declined from the prior year quarter. Allete said total kilowatt-hour sales declined approximately 10% from year-ago levels due to economic conditions that impacted all classes of retail electric customers. The lower retail sales were partially offset by sales to other power suppliers. Currently authorized interim electric rates are lower compared with the third quarter of 2008, resulting in reduced revenue year-over-year.
Allete's third-quarter net income declined to $15.8 million from $24.9 million in the year ago quarter.
Net income attributable to the company dropped to $16 million from $24.7 million last year. Earnings per share for the quarter dipped to $0.49 from $0.85 in the year-ago period.
On average, 3 analysts polled by Thomson Reuters expected earnings per share of $0.52 for the quarter. Analysts' estimate typically excludes one-time items.
Total operating revenue for the third quarter 2009 declined to $178.8 million from $201.7 million in the previous year. Analysts estimated revenues of $190.25 million for the quarter.
Net income from Allete's Regulated Operations segment was $16.6 million, compared to $19.2 million in the third quarter 2008.
Allete's investments and other segment reported a loss of $0.60 million in the third quarter of 2009, compared to net income of $5.5 million in the comparable period a year ago. The company now anticipates recording a net loss for Allete Properties for the entire year.
Total operating expenses for the quarter decreased to $153.4 million from $168.5 million in the prior year quarter. Operating income for the quarter was $25.4 million, down from $33.2 million in the corresponding quarter last year.
Because of lowered expectations, the company now expects its 2009 earnings will fall within a range of $1.95 to $2.05, excluding rate refunds related to 2008 that were recorded earlier this year. Three analysts expect 2009 earnings per share of $2.13 for the quarter.
ALE is currently being traded at $33.90 down $0.41 or 1.19% on a volume of 97,022 thousand shares on the NYSE.
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