WASHINGTON (dpa-AFX) - Utility holding company Ameren Corp. (AEE) on Friday reported a loss for the first quarter, reflecting an asset impairment charge and lower revenues due to unusually warm winter weather. Revenue and core earnings also declined, and missed analysts' estimates.
Looking ahead to fiscal 2012, Ameren lowered its reported earnings outlook, citing the asset impairment charge in the latest quarter. However, the company affirmed its core earnings outlook for the year.
The decline in core earnings for the latest quarter mainly reflects lower regulated utility electric as well as natural gas sales, and decreased margins at the merchant generation segment.
Utility sales were lower in the quarter due to winter temperatures that were among the warmest on record, compared to somewhat colder than normal temperatures in the year-ago period.
The lower merchant generation margins in the quarter reflect reduced generation due to lower market prices for electricity.
St. Louis, Missouri-based Ameren's net loss for the first quarter was $403 million or $1.66 per share, compared to net income of $71 million or $0.29 per share in the year-ago period.
The latest quarter's results include a noncash pretax asset impairment charge of $628 million at Ameren's Duck Creek merchant generating energy center as a result of the sharp decline in market prices for electricity in the quarter.
Excluding this charge and certain other items, core net income declined to $53 million or $0.22 per share from $60 million or $0.25 per share in the prior-year quarter.
On average, 8 analysts polled by Thomson Reuters expected the company to earn $0.23 per share for the quarter. Analysts' estimates typically exclude one-time items.
Total operating revenues decreased 13 percent to $1.66 billion from $1.90 billion in the prior-year quarter. Analysts had a consensus revenue estimate of $1.70 billion.
Looking ahead to fiscal 2012, Ameren lowered its earnings outlook to a range of $0.65 to $0.95 per share from the prior range of $2.20 to $2.50 per share, as a result of the first-quarter asset impairment charge.
However, the company affirmed its core earnings outlook for the year in a range of $2.20 to $2.50 per share. Analysts expect the company to earn $2.33 per share for the year.
In Friday's regular session, AEE is trading at $32.51, up $0.10 or 0.25 percent on a volume of 161,055 shares.
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© 2012 AFX News
