COLUMBUS (dpa-AFX) - Electric utility American Electric Power Co., Inc. (AEP) Friday reported a decline in first-quarter profit, reflecting reversal of a storm cost deferral due to a change in Virginia law as well as a restructuring charge. Operating earnings and revenues matched analysts' expectations.
Nicholas Akins, president and chief executive officer of the company said, 'Strong residential and commercial sales combined with positive regulated rate recovery supported our first-quarter performance.'
The company noted that its industrial segment continues to struggle, and sees continued overall flat demand. Meanwhile, its transmission business is delivering earnings improvement each quarter, it added.
For the first quarter, the company posted earnings of $363 million or $0.75 per share, lower than $389 million or $0.80 per share in the previous year. Operating earnings marginally decreased to $387 million from 389 million a year earlier. Operating earnings per share were $0.80 in the recent quarter.
Operating earnings excluded a $30 million reversal of a storm cost deferral due to a change in Virginia law and a $7 million restructuring charge associated with additional sustainable cost-control efforts.
On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.80 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter rose to $3.8 billion from $3.6 billion in the prior-year quarter. Six analysts had consensus revenue estimate of $3.78 billion for the quarter.
The firm also remains on track to complete corporate separation of its Ohio assets at the end of 2013.
The company reaffirmed its operating earnings guidance range for 2013 of $3.05 to $3.25 per share. Analysts expect the company to report earnings of $3.16 per share for 2013.
AEP is currently trading at $50.53, down $0.23 or 0.45 percent, on the NYSE.
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