First Energy profits increase

Staff/wire report

akron

FirstEnergy Corp. said first-quarter profits rose 30 percent, as the company benefited from increased Ohio rates, cost-control initiatives and increased industrial sales.

The energy company Tuesday reported a first-quarter net income of $149 million, or 51 cents per share, up from $119 million, or 39 cents per share, for the first quarter of 2009.

The distribution-rate increase for FirstEnergy’s three Ohio utilities improved first-quarter earnings by 3 cents per share, according to a company report.

FirstEnergy attempted to eliminate its discounts for all-electric homes last year, but the Public Utilities Commission of Ohio has since voted to restore the discounts. PUCO is reviewing FirstEnergy’s most recent proposal of long-term rates for all-electric residential customers.

First-quarter results also benefited from the company’s cost-control measures, which included lowering labor costs and reducing expenses for employee benefits.

FirstEnergy’s revenue stayed flat at $3.3 billion.

Sales in the wholesale market were down 37 percent, compared with the first quarter of 2009. Electric-generation sales were down 8 percent, and retail market sales were down 1 percent.

Distribution deliveries increased marginally, as increased industrial sales made up for decreased residential and commercial demand. Deliveries to industrial customers rose 6.5 percent for the quarter, primarily because of increases by steel and automotive customers.

“We expect 2010 to be another demanding year for our company and our industry,” said chief executive and president Anthony Alexander. “We are staying focused on the fundamentals and continue taking steps to address the economy and other challenges.”

FirstEnergy affirmed its 2010 earnings guidance of $3.50 to $3.70 per share, excluding one-time items. Wall Street analysts are looking for a profit of $3.91 per share.

FirstEnergy shares closed Tuesday at $37.07.