American Electric Power (AEP) expects 2010 ongoing earnings to be in the range of $2.80 - $3.20 per share. Analysts polled by Thomson Reuters estimate the company to report earnings of $3.06 per share for the quarter. Analysts' estimates typically exclude special items.
Ongoing earnings guidance for 2009, which reflects last week's upside adjustment, remains at $2.90 to $3.05 per share. Ongoing earnings represent earnings from continuing operations, which exclude special or one-time items included in the earnings prepared in accordance with generally accepted accounting principles.
The company anticipates capital expenditures for utility operations will decrease to $1.993 billion in 2010 from the estimated $2.466 billion in 2009, reflecting AEP's conservative approach for near-term capital expenditures.
American Electric Power will form a transmission company, or Transco, to pursue new transmission opportunities within the company's existing 11-state footprint, a key component in a three-part national transmission strategy. The company expects to invest $118 million in Transco activities in 2010.
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