Energy Provider Southern Posts Profit

ATLANTA (AP) — Energy provider Southern Co. on Wednesday said its third-quarter net income rose slightly as lower operating expenses and increased monthly service charges added to margins despite falling sales.

"While the economy continues to take its toll, we are seeing signs of stabilization and what may be the beginnings of recovery in certain sectors in our region," said CEO David Ratcliffe.

Margins were also helped by increased monthly service charges, cheaper amortization expenses and revenues related to the recovery of investments in environmental equipment.

These gains more than offset declining sales, which were hurt by cooler weather, industrial demand deterioration and economic weakness.

Earnings increased to $790 million, or 99 cents per share, compared with $780.4 million, or $1.01 per share, last year.

Analysts surveyed by Thomson Reuters estimated a profit of 98 cents per share, on average.

Revenue declined 14 percent to $4.68 billion, missing analysts' estimate of $5.5 billion.

Southern shares dipped 3 cents to $32.62 in afternoon trading.