American Water Works Company, Inc. (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility company, announced its earnings guidance for 2013.
American Water estimates its 2013 earnings to be in the range of $2.15 to $2.25 per share,
“The 2013 guidance range is based on the execution of our business goals,” said Jeff Sterba, president and CEO of American Water. “We continue to make progress in capturing efficiencies, which has benefited our regulated operation and maintenance cost structure. We have seen success in the areas of innovation, using technology to lower costs and the expertise of our employees to drive operational excellence. We will continue our targeted growth efforts, developing new offerings in our Market-Based business while expanding our regulated business in areas where we create value for customers and shareholders.”
The company also announced that it expects 2012 earnings per share from continuing operations to be at the low-end of the previously announced range of $2.12 to $2.22, prior to taking into account its $7 million donation to the American Water Charitable Foundation. The 2012 expectation includes $0.13 to $0.16 per share driven by unseasonably hot, dry summer weather in the East and Midwest and is based on fourth quarter performance. The fourth quarter was impacted by accelerated maintenance of water and wastewater infrastructure, Hurricane Sandy and the related decline in volume of water sold and an increase in costs, and higher than expected costs in SAP implementation. Actual 2012 financial results are subject to the completion of the independent audit.
The company’s earnings forecasts are subject to numerous risks, including those described under “Forward-Looking Statements” below and under “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
American Water will provide more detailed results in its final 2012 fourth quarter and year-end earnings press release and 10-K filing on February 26, 2013.