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

Duke Energy 4Q Earnings Exceed Expectations

By JONATHAN FAHEY

NEW YORK (AP) â¿¿ With three nettlesome financial issues resolved, Duke Energy Corp. CEO Jim Rogers says the company is now ready to face a future in which homes and businesses will no longer consume increasing amounts of electricity.

Duke reported fourth-quarter earnings Wednesday that beat analyst expectations as electric rates rose and more extreme weather increased demand for power. But Rogers said underlying demand for power, not including the up-and-down effects of weather, would likely remain weak for the foreseeable future because of a slow-growing economy and efficiency programs that are making homes and businesses less energy hungry.

"The growth in demand is not going to be the same as we've experienced in the past," he said. "Our industry is going to have to change its cost structure."

Duke reported net income of $435 million, or 62 cents per share, for the fourth quarter. Adjusted to remove the effect of costs from the recent acquisition of Progress Energy and other one-time charges, Duke earned 70 cents per share. Analysts had expected the company to earn 65 cents per share on an adjusted basis.

Duke shares fell 6 cents to $68.68 in midday trading.

Duke, based in Charlotte, acquired Progress Energy in June, making it the nation's largest utility in the U.S. by market value and number of customers. The company serves 7 million electric customers in six states.

The company's results for the quarter are not directly comparable a year earlier because Progress was still independent. As a stand-alone company, Duke posted net income of $288 million in the last three months of 2011.

Performance at Duke's regulated utilities improved as a result of the addition of Progress Energy's territories in the Carolinas and Florida. Higher power prices and an income tax benefit also helped, and electricity demand was boosted by more extreme weather.

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 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs