This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Industrial Power Sales Climb 3.4 Percent; ALLETE Reaffirms Guidance

ALLETE, Inc. (NYSE:ALE) today reported second quarter 2012 earnings of 39 cents per share on net income of $14.4 million and operating revenue of $216.4 million, compared to 48 cents on net income of $17.0 million and operating revenue of $219.9 million in 2011.

Last year's results included a $2.9 million, or 8 cents per share, income tax benefit. The non-recurring benefit resulted from the Minnesota Public Utility Commission's approval to defer the retail portion of a 2010 charge related to the Patient Protection and Affordable Care Act.

ALLETE's Regulated Operations segment, which includes Minnesota Power, Superior Water, Light & Power and the company's investment in the American Transmission Company, recorded net income of $14.4 million. The net income of $18.3 million recorded in 2011 included the $2.9 million benefit described above.

Second quarter 2012 results included higher current cost recovery rider revenue, higher costs under the Square Butte power purchase agreement and increased depreciation and interest expense compared to the year-ago period. Total electric sales to Minnesota Power's retail and municipal customers rose 1.9 percent compared to a year ago; among industrial customers the increase was 3.4 percent.

“Industrial demand for power remains strong,” said ALLETE Chairman, President and CEO Al Hodnik. “Based on the demand nominations received this week, we expect these customers to run at near full-capacity levels for the remainder of the year.”

ALLETE's Investments and Other segment broke even in the second quarter, an improvement over the $1.3 million net loss recorded in the second quarter of 2011. The difference was due primarily to lower interest and state income tax expenses.

“Our year-to-date financial results are right where we expected them to be, and we look forward to a strong second half of 2012,” Hodnik said. “The company's full year earnings guidance remains unchanged, in an expected range of between $2.45 and $2.65 per share.” He said 2012 guidance assumes continued strong industrial demand for electricity, increasing current cost recovery rider revenue, and an approximate increase of five percent year-over-year in operating and maintenance expense.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs