DULUTH, Minn. (AP) â¿¿ Power company owner Allete Inc. said its first-quarter net income fell 34 percent as residential customers used less electricity during a mild winter.
The company earned $24.4 million, or 66 cents per share, for the quarter that ended March 31. That was down from $37.2 million, or $1.07 per share, during the same period last year. Revenue fell slightly to $240 million, from $242.2 million a year earlier.
Analysts surveyed by FactSet expected a profit of 70 cents per share on revenue of $243.5 million.
The decline in operating profits was smaller than it looked because the year-ago quarter included a reversal of a tax liability, benefiting the year-ago results by 18 cents per share. Also, Allete sold shares to pay for a capital investment program, hurting results by 4 cents per share compared to a year ago.Allete said residential customers in its Minnesota Power unit used about 1 percent less electricity than a year ago because of the mild winter. The weather-related impact added up to about 5 cents per share, the company said. Industrial use rose 1.7 percent as iron-ore mining in Minnesota's Iron Range ran near capacity. Allete's full-year guidance remained unchanged at $2.45 to $2.65 per share. It expects strong industrial demand for electricity, rising rates, and a five percent increase in operating and maintenance expense. Analysts forecast profit of $2.47 per share. Allete owns a Minnesota electric utility that serves 144,000 residents and large industrial customers. It also owns part of an electric transmission company; a coal mine in North Dakota; a water, electric and natural gas utility in Superior, Wis.; and a real estate division that owns properties in Florida. Allete shares fell 48 cents to close at $40.67.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV