Progress Energy, Inc. : Progress Energy 1Q Net Down 18% As Mild Weather Hits Energy Sales
05/03/2012| 01:21am US/Eastern
Progress Energy Inc. (PGN) posted an 18% decrease in first-quarter profit as mild weather in the Carolinas resulted in significantly lower energy sales for the quarter.
The Southeastern electric and natural-gas utility serves roughly 3 million customers in the Carolinas and Florida, leaving it sensitive to unusual weather that can affect power and heating demand.
Progress has for over a year been working to complete a $26 billion all-share merger with Duke Energy Corp. (DUK), an effort that was slowed by the objections of federal regulators over the companies' original plan to mitigate their combined market power in the Carolinas.
For the first quarter, Progress Energy reported a profit of $150 million, or 51 cents a share, compared with a year-earlier profit of $184 million, or 62 cents a share. Stripping out items like merger costs, the company's ongoing earnings fell to 48 cents a share from 69 cents a year earlier.
Revenue fell 3.5% to $2.09 billion. Analysts expected earnings of 64 cents a share on revenue of $2.25 billion, according to FactSet Research.
Operating margin narrowed to 17.4% from 20.8%.
Shares closed Wednesday at $53.54 and were inactive premarket. The stock is up 13% over the past year.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207; email@example.com