FirstEnergy reports loss in 2nd quarter

Staff report

AKRON

FirstEnergy Corp. announced the company lost $164 million in the second quarter of 2013.

The company said Tuesday that revenue for the quarter was $3.5 billion and stated that losses were caused primarily by plant-deactivation costs, which reduced earnings by 85 cents per share, according to FirstEnergy’s report.

The Akron-based electric utility said revenues were $3.8 billion in the second quarter last year.

“These solid second-quarter results are in line with our expectations, and we are reaffirming our 2013 non-GAAP [Generally Accepted Accounting Practices] earnings guidance range of $2.85 to $3.15 per share,” Anthony J. Alexander, company president and chief executive officer, said in a statement. “We continue to focus on targeted growth opportunities in our competitive and regulated businesses, while taking additional steps to further reduce costs across the company in light of the continued sluggish economy in much of our region, weak market prices for power, and environmental mandates.”

FirstEnergy benefited from reduced operating costs and higher residential distribution deliveries. Results were hurt by higher taxes, lower- capacity revenues and increased depreciation, however.

Sales gained 7 percent for the quarter compared with the second quarter of 2012, but those gains were offset by the lower-capacity revenues.