Allete 3Q Profit Falls 35 Percent

DULUTH, Minn. (AP) — Allete Inc., a regional utility, said Friday third-quarter profit fell 35 percent as sales of kilowatt-hour sales fell due to the weak economy.

Third-quarter profit fell to $16 million, or 49 cents per share, from $24.7 million, or 85 cents per share last year.

Analysts polled by Thomson Reuters, on average, predicted a profit of 52 cents per share.

Average shares outstanding rose 12 percent to 32.9 million during the quarter.

Revenue fell 11 percent to $178.8 million from $201.7 million last year.

Total kilowatt-hour sales fell 10 percent from year-ago levels due to the weak economy. The lower retail sales were partly offset by sales to other power suppliers. Also, current electric rates are lower compared with the third quarter of 2008, which hurt revenue.

The company also cut guidance due to weak results at its Allete Properties unit, which owns real estate in Florida, one of the hardest hit areas during the housing downturn.

Shares fell 54 cents to $33.77 in late afternoon trading.