DOW JONES NEWSWIRES PPL Corp.'s (PPL) first-quarter earnings rose 35% as strong results from utility and power-plant operator's U.K. business offset the impact of warm winter weather in the U.S. PPL last year closed on deals worth more than $14 billion to acquire two Kentucky utilities and an electric-distribution business in the U.K. Midlands. The deals were part of an effort to enhance the company's exposure to regulated power markets, which have tended to see less volatile returns. "The successful execution of our Midlands integration plan in the U.K. is driving cost savings and operational improvements, demonstrating again the value of our expansion into diverse markets and the attainment of a more predictable earnings profile," said Chief Executive William H. Spence. But income from company's merchant-power business, which remains PPL's biggest top-line contributor, has come under pressure as the price of natural gas languishes. The company reported a profit of $541 million, or 93 cents a share, up from $401 million, or 82 cents a share. Excluding special items like currency adjustments and acquisition-related impacts, earnings from continuing operations were 70 cents, down from 84 cents. Revenue jumped 41% to $4.11 billion. Analysts polled by Thomson Reuters had recently forecast earnings of 66 cents on revenue of $3.14 billion. While earnings from the company's U.K. regulated operations soared, PPL saw declines in earnings from its Pennsylvania and Kentucky businesses, reflecting the impact of an unusually warm winter. Shares closed Thursday at $27.25 and were inactive premarket. The stock is down 7.4% so far this year. -By Kristin Jones; Dow Jones Newswires; 212-416-2208; kristin.jones@dowjones.com
