Progress Energy's 3Q profit rises 46 percent

AP News
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Posted: Oct 29, 2010 6:02 PM
Progress Energy's 3Q profit rises 46 percent

Progress Energy Inc. said Friday that its profit jumped 46 percent in the third quarter versus the prior year, when the utility booked a $101 million charge related to a litigation verdict.

The company, which runs utilities in Florida and the Carolinas, reported net income of $361 million, or $1.23 a share, for the three months ended Sept. 30. That compares with net income of $247 million, or 88 cents a share, in the same period last year.

The most recent results missed the $1.27 a share analysts were expecting, on average, according to a survey by Thomson Reuters.

Revenue grew to $2.96 billion from $2.82 billion. Analysts had forecast revenue of $3 billion.

Progress Energy noted that favorable weather in the Southeast and lower depreciation and amortization in Florida helped drive earnings in the latest quarter.

"The economy in the Carolinas and Florida continues to show modest but steady signs of recovery, and we remain focused on managing costs and improving operations and execution," said Bill Johnson, chairman, president and CEO.

The company narrowed its estimate for 2010 adjusted earnings per share to a range of $3 to $3.05, at the high end of its previously announced guidance, citing continued strength in weather.

Progress Energy shares added 4 cents to $44.99 in aftermarket trading after rising 5 cents to $45 during the regular session.