Westar 1Q Profit Down, Cuts Capital Spending

DAVID TWIDDY

KANSAS CITY, Mo. (AP) — Westar Energy Inc. said Friday its first-quarter profit fell 28 percent, missing Wall Street expectations as higher expenses and lower sales volume offset rate increases.

The Topeka, Kan.-based utility also said it would cut planned spending for energy generation, environmental upgrades and other capital projects in 2010 and 2011 by $500 million due to the struggling economy and poor equity markets.

"The weakness in the economy has not required us to change our strategy," Chief Financial Officer Mark Ruelle told analysts in a conference call. "It has, however, convinced us that we need to adjust our speed of execution."

Still, the company reaffirmed its full-year earnings forecast of between $1.65 and $1.90 per share, excluding one-time items. Analysts surveyed by Thomson Reuters predict $1.75 per share earnings during the year.

Its shares were steady at $17.99 in afternoon trading.

Westar earned $44 million, or 40 cents per share, during the three months ending March 31, down from $61 million, or 62 cents per share, a year ago.