FirstEnergy's Q3 net income up to US$511M, from US$179M a year ago, on higher margins, Allegheny Energy purchase; revenue up 26.6% to US$4.72B

Graziela Medina Shepnick

AKRON, Ohio , November 1, 2011 (Associated Press) – FirstEnergy 3Q profit rises on benefit of higher margins, Allegheny purchase

FirstEnergy Corp. said on Tuesday that its third-quarter profit rose as it benefited from higher margins and its purchase of Allegheny Energy.

The company reported net income of $511 million, or $1.22 per share, for the quarter that ended Sept. 30. That was up from net income of $179 million, or 59 cents per share, during the same period last year. Revenue rose 26.6 percent to $4.72 billion, from $3.73 billion a year ago.

FirstEnergy said its adjusted earnings would have been $1.34 per share, up from $1.28 per share a year ago. Analysts surveyed by FactSet had been expecting a profit of $1.23 per share on revenue of $5.6 billion.

The company said earnings growth would have been higher if not for higher operating costs including outages at nuclear and fossil-fuel planes, and higher borrowing costs and depreciation expenses.

The company affirmed its 2011 adjusted earnings guidance of $3.30 to $3.50 per share, along with 2012 and 2013 adjusted profits of $3.20 to $3.50 per share.

Analysts were expecting $3.35 for 20011 and $3.30 for 2012 and $3.31 per share for 2013.

Shares fell 23 cents to $44.73 in midday trading.

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