Southern Earnings Fall 65 Percent, But Beat View

ATLANTA (AP) — Southeastern utility operator Southern Co. said Wednesday its first-quarter profit sank 65 percent as consumers and businesses turned off the lights to save money amid the recession, but its results still exceeded Wall Street's expectations.

The Atlanta-based company earned $126 million, or 16 cents per basic share, compared with $359 million, or 47 cents per basic share, a year ago.

Earnings for the 2009 first quarter included a charge of 26 cents a share related to a settlement with MC Asset Recovery LLC. The settlement resolves a lawsuit arising out of the 2003 bankruptcy of Mirant Corp., a former Southern subsidiary.

Excluding the settlement, Southern earned 42 cents a share, compared with 47 cents a share for the same period in 2008.

Revenue dropped less than 1 percent to $3.67 billion, from $3.68 billion a year earlier.

Analysts polled by Thomson Reuters forecast a profit of 41 cents per share on $3.5 billion in sales.

Southern Co. said electricity sales were dragged down by the slowing economy, especially industrial sales. The quarter was also hurt by lower commercial and industrial rates and higher depreciation costs. These factors were partially offset by lower operations and maintenance expenses and higher retail rates.