Diversified utility company Consolidated Edison Inc. (ED) said Monday its third quarter profit increased from last year, due to the absence of a hefty mark-to-market losses realized a year-ago. Looking ahead, the company reaffirmed its earnings from ongoing operations outlook for fiscal 2009.
The New York-based company reported net income for common stock of $336 million or $1.22 per share for the third quarter, up from $182 million or $0.66 per share in the prior year quarter.
Results for the quarter include net mark-to-market gains of $17 million or $0.06 per share of competitive energy businesses, compared to net mark-to-market losses of $88 million or $0.32 per share last year.
Excluding items, earnings from ongoing operations rose to $319 million or $1.16 per share from $269 million or $0.98 per share in the year-ago quarter. On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $1.05 per share for the third quarter. Analysts' estimates typically exclude special items.
In its preceding second quarter, Con Edison's third quarter net income declined 73% to $150 million or $0.55 per share from last year's $552 million or $2.02 per share. The decline reflects the absence of a hefty gain on the sale of Con Edison Development's generation projects and discontinued operations.
Excluding items, income from ongoing operations grew to $131 million or $0.48 per share from $114 million or $0.42 per share in the prior year quarter.
Summing up, Kevin Burke, the company's Chairman, President and Chief Executive Officer said, "Reliability, energy efficiency, and infrastructure investments remained priorities as the company performed well, and delivered results in line with expectations, during a relatively mild summer."
In a separate development, the company's unit, Craig Ivey was appointed president of Con Edison of New Yor effective November 1. Ivey succeeds Con Edison President and COO Louis Rana who is retiring after 40 years of service.
Ivey, 46, joins Con Edison having served as senior vice president for Transmission and Distribution at Dominion Resources in Virginia for the last two years.
For the nine-month period of 2009, Con Edison reported net income for common stock of $666 million or $2.43 per share, compared to $1.04 billion or $3.80 per share in the previous year period.
Earnings from ongoing operations grew to $665 million or $2.43 per share from $620 million or $2.27 per share in the prior year period.
For the full year 2009, Con Edison still expects earnings from ongoing operations in the range of $3.00 to $3.20 per share, which excludes the net mark-to-market effects of the competitive energy businesses. The Street currently estimates earnings of $3.10 per share for full year 2009.
The utility sector in general has been hit hard by weak demand for power amid the severe economic crisis. The utility sector is highly regulated and has less competition as the territories are more or less insulated from peers, resulting in only one electricity provider in most towns. The slowdown in residential and commercial real estate growth has also impacted the utility companies' steady profits.
According to the Energy Information Administration, total U.S. electricity consumption fell 1.6% in the 2008. Electricity consumption is forecast to decline 3.3% in 2009, and then grow 1.3% in 2010 as the improving economy could lead to increased electricity sales in the industrial sector.
Last week, Con Edison announced that it would receive $136 million from the recently announced $3.4 billion smart grid stimulus funds from the U.S. Department of Energy. The company said that the federal stimulus money would help it fund a smart grid program for customers served by its units Consolidated Edison Co. of New York and Orange & Rockland Utilities.
The Con Edison program is one of 100 projects that will share $3.4 billion in Smart Grid Investment Grant awards announced by President Barack Obama. Most of the fund is projected to go to utilities to install meters, transformers and other equipment that can control the flow of electricity and reduce power use and homeowner bills. Utility is one of areas that the Obama Administration would like to strengthen, with the creation of a smart grid, making use of smart meters and load-controllers. The federal aid is part of the $787 billion economic stimulus legislation approved by Congress in February.
While creating new pathways for energy, investments in the smart grid would also likely create thousands of new jobs and save consumers more than $20 billion in electricity bills over the next 30 years. According to the Electric Power Research Institute, the implementation of smart grid technologies could reduce electricity use by more than 4% by 2030.
According to Con Edison, the stimulus funds will broaden the scope of its existing smart grid efforts to modernize the electric grid in the most complex energy market in America. The company is already testing various technologies in a smart grid pilot project in Queens.
Among others in the industry, American Electric Power Co. Inc. (AEP) reported an 18.4% growth in profit for the third quarter, helped by rate increases and cost cutting. This was partially offset by weak industrial demand amid the economic downturn, mild weather, as well as a quarterly revenue drop. The company also raised the low-end of its prior ongoing earnings forecast range for fiscal 2009.
Con Edison shares are currently trading at $40.89, up 21 cents.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.