This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Duke Energy 4Q Earnings Exceed Expectations

Adjusted for the effect of weather, electricity demand grew slightly less than 1 percent for the year, according to Duke Chief Financial Officer Lynn Good. She said Wednesday that's about how fast she expects demand to grow in the coming months and years.

Good said that in Duke's service territory, auto manufacturers and metals companies have been increasing activity but textile manufacturers and chemical companies have been cutting back.

Rogers said lower power demand is likely to affect the entire industry. That could mean cost-cutting in the months ahead. He cited the need to lower costs as a chief reason behind his company's acquisition of Progress Energy, and said the combination of the companies will function as a catalyst to lower the company's costs.

Seven hundred employees have accepted buyouts to leave the company since the merger was completed, and Duke expects another 400 to leave in 2013. Duke took a charge of $164 million in the quarter, accounting for 13 cents per share, to pay merger-related expenses.

For all of 2012, the company posted net income of $1.77 billion, up from $1.71 billion in 2011. Revenue rose to $19.78 billion from $14.62 billion as the company benefited from 6 months of revenue from Progress Energy after the merger.

Over the past three months, Duke has resolved three issues that have hung over the company and concerned investors.

In December the company reached a settlement with North Carolina regulators over surprise executive changes in the hours after Duke's merger with Progress was completed. Rogers will retire by the end of this year as part of the settlement.

Also in December, Indiana regulators approved a settlement over payment terms for coal plant there that is well over budget. Customers will pay $2.6 billion and Duke will absorb $900 million. The plant was originally supposed to have cost $1.9 billion. The overruns cost Duke $28 million in the quarter, or 2 cents per share. Cost overruns cost the company $628 million in 2012.

2 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 17,365.66 +170.24 0.99%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,617.5520 +51.4140 1.13%

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