NorthWestern 3Q Profit Jumps On Accounting Change

DIRK LAMMERS

SIOUX FALLS, S.D. (AP) — Energy company NorthWestern Corp. said late Wednesday that its third-quarter profit increased by 41 percent, spurred mostly by a $12.4 million tax benefit from a repair expense deduction.

The Sioux Falls, S.D., company said it received approval from the Internal Revenue Service during the quarter to switch to an accounting method that allows it to deduct repairs that would have previously been capitalized.

NorthWestern Corp., which does business as NorthWestern Energy, reported net income of $18.9 million, or 52 cents per share, in the third quarter of 2009 compared to $13.4 million, or 35 cents per share, in the third quarter of 2008.

Revenue slipped by 14 percent to $232.9 million from $272.2 in the year-ago period.

Analysts polled by Thomson Reuters were looking for a profit of 30 cents per share on revenue of $257.2 million.

The tax benefit was offset by several factors. They include a reduction in retail electric and natural gas volumes caused by mild weather, an increase in labor costs, the absence of a gain on forward contracts and an increase in insurance reserves.