Progress Energy's 3Q Earnings Fall On Charge

RALEIGH, N.C. (AP) — Electric utility Progress Energy Inc. said Friday its third-quarter net income fell mainly because of a charge related to damages in a breach-of-contract lawsuit.

For the July-September quarter, Progress Energy reported net income attributable to controlling interests of $247 million, or 88 cents per share, compared with net income of $309 million, or $1.18 per share, in the same quarter a year ago.

The latest quarter included a charge of $101 million for a verdict in a breach-of-contract suit with U.S. Global. The suit related to ownership interests in the company's synthetic fuels facilities, which have since been discontinued.

Excluding the charge and other special items, the company said ongoing net income in the latest quarter was $342 million, or $1.22 per share.

Revenue increased to $2.8 billion from $2.7 billion.

Analysts surveyed by Thomson Reuters had estimated third-quarter earnings of $1.18 per share on revenue of $2.8 billion. Analyst estimates typically exclude one-time items.

Progress Energy reaffirmed its 2009 ongoing earnings guidance range of $2.95 per share to $3.15 per share. Analysts forecast 2009 earnings of $3.03 a share.

Progress Energy's guidance excludes any impact from contingent value obligation mark-to-market adjustment, potential impairments and discontinued operations.

Shares of Progress Energy rose 23 cents to $37.97 in morning trading.