By Chelsey Dulaney
PPL Corp. on Monday lifted the bottom end of its earnings
forecast for the year after swinging to a loss in its second
quarter on charges associated with the spinoff of its competitive
generation business.
For the year, PPL is now forecasting earnings of $2.15 to $2.25
a share, up from its previous forecast of $2.05 to $2.25 a share.
PPL said it is seeing strong performance in its regulated-utility
business in the U.S. and U.K.
PPL also lifted its dividend to 37.75 cents a share from 37.25
cents a share.
The Pennsylvania utilities company recently spun off its
competitive generation business in order to remain "a purely
regulated utility company." The business was combined with RJS
Power Holdings LLC to create a company called Talen Energy Corp. on
June 1.
PPL said the spinoff resulted in a $1 billion loss from
discontinued operations in the quarter.
In all, the company reported a loss of $757 million, or $1.13 a
share, compared to a prior-year profit of $229 million, or 34 cents
a share.
Excluding special items, earnings from continuing operations
were 49 cents.
Operating revenue fell 3.7% to $1.78 billion, as utility revenue
fell 3.6%.
Analysts polled by Thomson Reuters expected a profit of 47 cents
a share on revenue of $1.94 billion.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
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