American Electric Power Co.'s (AEP) third-quarter profit rose a
higher-than-expected 25% on recovering demand.
The utility had been hurt by a sharp drop in power demand during
the recession, which led it to cut jobs, among other moves, to
reduce expenses.
American Electric posted earnings of $555 million, or $1.16 a
share, up from $443 million, or 93 cents a share, a year earlier.
Revenue rose 17% to $4.1 billion.
Analysts polled by Thomson Reuters most recently forecast
earnings of $1.04 a share on $4.3 billion in revenue.
Retail deliveries to industrial customers rose 6% following last
year's 17% plunge. Output to residential and commercial users,
which held up relatively better during the downturn, rose 12% and
3.4%, respectively. American Electric has utility operations
stretching from Texas to Ohio that typically deliver a roughly
equal share to each type of customer. Wholesale electricity output
jumped 29%.
Shares of American Electric, which narrowed its 2010 earnings
target, closed Monday at $36.33 and were inactive in recent
premarket trading.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com