Public Service Enterprise Group Inc.'s (PEG) third-quarter
profit fell 26% on prior-year divestiture gains while
cooler-than-expected weather and slack demand amid the economic
downturn hurt the utility company.
Though earnings topped analysts' expectations, the third-quarter
impacts "continue to make it difficult to meet the upper end of our
2009 earnings guidance," said Chairman and Chief Executive Ralph
Izzo.
Utilities have struggled with slowing demand during the economic
downturn, and the New Jersey-based power and gas provider has dealt
with the reduction in power consumption by minimizing other costs
and benefiting from lower fuel prices.
PSEG reported third-quarter income of $488 million, or 96 cents
a share, down from $656 million, or $1.29, a year earlier. Earnings
from continuing operations dipped to 92 cents from 94 cents and
revenue fell 18% to $3.09 billion.
Analysts had most recently forecast earnings of 89 cents on
$4.67 billion in revenue.
The company's utility operation posted a 10% earnings decline
while the generation business had a 5.8% drop because of declining
demand and lower commodity prices.
Shares closed at $29.76 Tuesday and weren't active premarket
Wednesday.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;