By Angela Chen
American Electric Power Co. reported Thursday that first-quarter
earnings rose 12%, boosted by the effects of another cold
weather.
Chief Executive Nicholas Akins said weather helped both the
latest quarter and the year-earlier period, as they were "the
coldest and second-coldest winters respectively in our service
territory during the past 35 years."
Industrial sales increased by 1.2%, though residential sales
fell 4% because of even higher usage the year earlier due to the
2014 polar vertex. Earnings in the transmission business grew to
$36 million from $24 million.
Overall, the company reported a profit of $629 million, or $1.29
a share, up from $560 million, or $1.15 a share, a year
earlier.
Excluding commodity hedging and other items, per-share earnings
were $1.28, up from $1.15 in the prior-year period.
Revenue increased to $4.7 billion from $4.6 billion.
Analysts had expected per-share earnings of $1.10 on revenue of
$4.7 billion, according to FactSet.
The company reaffirmed its full-year earnings guidance.
Shares, inactive premarket, have been down about 7.6% this year
through Wednesday's close.
Write to Angela Chen at angela.chen@wsj.com
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