Electric utility Wisconsin Energy Corp. (WEC) posted higher profit for the fourth-quarter, as lower demand was offset by effective cost reduction measures.
The Milwaukee-based company reported earnings from continuing operations of $113.6 million, compared with $100.4 million in the year-ago quarter. Earnings per share from continuing operations rose to $0.96 per share from last year's $0.85, and surpassed the $0.89 per share earnings consensus estimate of 11 analysts polled by Thomson Reuters. Analysts' estimates typically exclude special items.
Net income for the recent quarter was $118.7 million or $1.00 per share, higher than $100.4 million or $0.85 per share a year ago.
Fourth-quarter revenues were $1.07 billion, down from $1.20 billion in the corresponding period last year. Three analysts had consensus revenue estimate of $1.31 billion for the quarter.
Total operating expenses dropped to $924.2 million from $1.09 billion in the comparable period of 2008.
The company said the usage of electricity by residential customers declined 3.8%, mainly because of an unusually cool summer. Consumption of electricity by commercial and industrial customers fell by 10%, reflecting the dramatic slowdown in the economy.
For fiscal 2009, the company posted earnings from continuing operations of $377.2 million or $3.20 per share, versus $357.8 million or $3.03 per share last year. Net earnings grew to $382.4 million or $3.24 per share from $359.1 million or $3.04 per share in 2008. Revenues for the full year totaled $4.13 billion, down from $4.43 billion in the previous year.
Gale Klappa, chairman, president and chief executive officer, said, "In a tough economy we cut costs, improved productivity and posted solid financial results. And on virtually every meaningful measure, from customer satisfaction to network reliability to progress on our Power the Future plan, the company made great strides during the year."
WEC closed the Monday's regular trading session at $49.13.
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