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
TheStreet Open House

ALLETE Reports Third Quarter Earnings Of 78 Cents Per Share

Stocks in this article: ALE

ALLETE, Inc. (NYSE:ALE) today reported third quarter 2012 earnings of 78 cents per share on net income of $29.4 million and operating revenue of $248.8 million, compared to 57 cents on net income of $20.5 million and operating revenue of $226.9 million in the third quarter a year ago.

ALLETE benefited from increased energy sales, higher current cost recovery rider revenue and renewable energy tax credits associated with its expanding renewable wind generation portfolio.

“We’re pleased to report a strong third quarter that positions ALLETE to meet its financial targets as we approach year-end,” said ALLETE Chairman, President and CEO Al Hodnik. He said the company has narrowed its earnings guidance range and now expects to finish 2012 with earnings of between $2.50 and $2.60 per share.

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 $29.3 million compared to $23.8 million in the third quarter of 2011. Electric sales to retail and municipal customers were up 3.8 percent compared to the year-ago period.

Sales to Minnesota Power’s industrial customers in 2012 were up 3.5 percent compared to a year ago as the company’s taconite customers continue to produce at near full-capacity levels. Operating and maintenance, depreciation and interest expense increased from the year-ago period.

ALLETE’s Investments and Other segment had net income of $0.1 million in the third quarter, compared to a loss of $3.3 million recorded in 2011. The difference was due primarily to lower state income tax expense.

Quarterly earnings were diluted by four cents per share due to issuances of common shares needed to fund major capital improvements.

“We expect our energy sales to continue to be strong as the regional economy trends in a positive direction,” Hodnik said. “Going forward, potential new industrial customers remain on track with several major projects, we plan to make investments in a major transmission line and an environmental retrofit, and we are close to completion of our Bison 2 and 3 wind energy installations.”

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs