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Profit Up at DPL

TSC and IRIS Staff

DPL(DPL) said its second-quarter earnings increased 3.2% from a year ago.

The Dayton, Ohio-based utility company earned $22.6 million, or 18 cents a share, in the quarter, compared with $21.9 million, or 17 cents a share, a year ago. Earnings from continued operations were also $22.6 million, or 18 cents a share, compared with $16.7 million, or 13 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting the company to earn 24 cents a share.

Second-quarter revenue rose 5.3% from a year ago to $309 million, primarily due to higher average rates for retail and wholesale sales and higher wholesale sales volume, which were offset by lower retail sales volume.

For the full year, the company reaffirms basic earnings from continuing operations of $1.35 a share to $1.5 a share and $1.65 a share to $1.8 a share for 2007. Analysts forecast earnings of $1.36 a share for 2006 and $1.64 a share for 2007.

Gross profit increased 4.7% to $193.4 million and gross profit margin declined 36 basis points to 62.6%.

The company repurchased about 13 million shares at a cost of $348.2 million.