Utility company NorthWestern Corp.(NWE), Wednesday reported a decline in profit for the second quarter, reflecting weakness in non-firm wholesale transmission revenues in Montana and wholesale power prices in South Dakota. Earnings came in short of analysts' estimate by a wide margin. NorthWestern also revised its full year forecast , lowering earnings outlook for 2009 that continues to be within analysts' current consensus estimate.
The Sioux Falls, South Dakota-based company's net income for the second quarter declined to $6.10 million or $0.17 per share from $9.50 million or $0.24 per share in the prior-year quarter.
On average, four analysts polled by Thomson Reuters expected the company to earn $0.30 per share for the second quarter. Analysts estimates typically excludes special items such as one-time charges or gains.
Quarterly revenues dropped to $235.71 million from $276.51 million in the comparable quarter a year ago.
Operating income for the quarter dropped to $27.50 million from $31.52 million in the same quarter last year.
Total operating expenses for the quarter decreased to $208.24 million from $245.00 million last year.
During the second quarter, the company incurred a $2.9 million higher pension expense and a $3.5 million insurance recovery related to previously incurred Montana generation related environmental remediation costs.
For the six-month period, net income decreased to $28.91 million or $0.80 per share from $33.00 million or $0.84 per share in the same period a year ago. Revenues for the six-months period declined to $606.62 million from $662.50 million last year.
Looking ahead, the company expects reduced off-system transmission revenues in Montana for the remainder of 2009, and wholesale electric volumes in South Dakota to decrease due to pricing and volume reductions.
For fiscal year 2009, NorthWestern now expects earnings in the range of $1.75 - $1.85 per share, compared to its earlier issued forecast of $1.85 - $2.00 per share. Analysts currently expect the company to report earnings of $1.83 per share for the full year.
NWE is currently trading at $24.05, up $0.01 or 0.04%, on a volume of 0.28 million shares on the NYSE.
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