Hawaiian Electric Industries, Inc. (NYSE:HE) (HEI) today reported consolidated net income for common stock for the full year of 2010 of $113.5 million, or $1.21 diluted EPS, compared to $83.0 million, or $0.91 diluted EPS for 2009. Excluding the fourth quarter 2009 losses related to the liquidation of the bank’s private-issue mortgage-related securities (PMRS) portfolio, adjusted 2009 earnings were $102.3 million or $1.12 diluted EPS. The overall increase in year-over-year earnings was driven by the bank’s 2010 cost reduction achievements from the completion of its multi-year performance improvement project (PIP) and lower credit costs.
Consolidated net income for the fourth quarter of 2010 was $24.7 million, or $0.26 diluted EPS, compared to $13.7 million, or $0.15 diluted EPS for the fourth quarter of 2009. Excluding the PMRS losses discussed above, adjusted 2009 fourth quarter earnings were $33.0 million or $0.36 diluted EPS.
“This was a solid year for HEI as we demonstrated improved profitability and earnings and reduced risk. We achieved several key milestones in our strategic initiatives at both operating companies,” said Constance H. Lau, HEI president and chief executive officer. “Our distinctive business combination continues to provide our company with a strong balance sheet, access to capital markets needed to invest in the strategies of our companies and the financial resources to continue providing an attractive dividend for our shareholders.”
“At the utility, we recently received approval to implement a new regulatory model that will provide for more timely cost recovery for our clean energy and reliability investments. This new model will help us meet our state’s goals to transition to a clean energy economy and achieve one of the most aggressive renewable portfolio standards in the nation,” added Lau.“At the bank, we successfully completed our multi-year performance improvement project in 2010. As a result, we achieved significant improvements in profitability and cost structure while enhancing our product and service offerings for our customers. We are pleased to report a strong 1.20% return on assets and 56% efficiency ratio for the year,” Lau said.