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Allegheny Energy 1Q Profit Edges Down 2 Pct

The Associated Press

GREENSBURG, Pa. (AP) — Allegheny Energy Inc., an electricity and natural gas provider, on Tuesday said its first-quarter profit dipped 2 percent due to higher costs and income taxes.

The Greensburg, Pa.-based company said its quarterly earnings slid to $133.9 million, or 79 cents per share, compared with $136.1 million, or 80 cents per share in the prior-year quarter.

Results include a $32.4 million pretax gain related to economic hedges that do not qualify for hedge accounting. Excluding one-time items, the company posted an adjusted profit of 67 cents per share.

Revenue climbed 9 percent to $957.2 million, up from $875 million in the same quarter last year.

In a survey by Thomson Reuters, analysts, who typically exclude nonrecurring items, predicted an average profit of 70 per share on revenue of $1.01 billion.

The company also announced on Tuesday that its subsidiary, The Potomac Edison Company, has signed an agreement to sell its distribution operations in Virginia to Rappahannock Electric Cooperative and Shenandoah Valley Electric Cooperative for proceeds of $340 million.

Shares of the company slid 43 cents to $27.95 in morning trading.