Akron-based FirstEnergy reporting "solid" second quarter results with a net loss of $164 million dollars and revenues of $3.5 billion on the books, primarily the cost of deactivating coal-fired plants that wouldn't meet updated environmental regulations. The company reported second quarter net income of $188 million on revenue of $3.8 billion for the quarter last year.
For the first sixth months of the fiscal year, the utility reports net income of $32 million on revenue of $7.2 billion compared to $494 million and $7.7 billion for the same period in 2012.
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(FirstEnergy) FirstEnergy Corp. (NYSE: FE) today announced second quarter 2013 basic and diluted earnings of $0.59 per share of common stock on a non-GAAP basis. These results exclude the impact of the special items listed below. This compares to basic and diluted non-GAAP earnings of $0.60 per share of common stock in the second quarter of 2012.
“These solid second quarter results are in line with our expectations, and we are reaffirming our 2013 non-GAAP earnings guidance range of $2.85 to $3.15 per share,” said FirstEnergy President and Chief Executive Officer Anthony J. Alexander. “We continue to focus on targeted growth opportunities in our competitive and regulated businesses, while taking additional steps to further reduce costs across the company in light of the continued sluggish economy in much of our region, weak market prices for power, and environmental mandates.”
On a GAAP basis, the company reported a basic and diluted loss of $0.39 per share of common stock in the second quarter of 2013 on a net loss of $164 million and revenue of $3.5 billion. Second quarter 2012 basic and diluted earnings were $0.45 per share on net income of $188 million, with revenue of $3.8 billion. The loss in the second quarter of 2013 was primarily the result of plant deactivation costs, which reduced earnings by $0.85 per share.
Second quarter 2013 non-GAAP results benefited from reduced operating costs and higher residential distribution deliveries. Results were negatively affected by higher taxes, lower capacity revenues, and increased depreciation expense. Total distribution deliveries decreased by 1 percent compared to the second quarter of 2012. Commercial deliveries decreased 3 percent and industrial deliveries decreased 2 percent, while sales to residential customers increased 3 percent compared to the prior-year period.
Contract sales at the company’s competitive segment grew 7 percent compared to the second quarter of 2012 as a result of the continued successful implementation of FirstEnergy Solutions’ multi-channel sales approach. These gains were offset primarily by lower capacity revenues, which drove the reduction in commodity margin. For the first half 2013, the company reported net income of $32 million, or $0.08 per basic and diluted share of common stock, on revenue of $7.2 billion. This compares to net income of $494 million, or basic and diluted earnings of $1.18 per share,
on revenue of $7.7 billion in the first six months of 2012.