PPL's Earnings Take a Dive

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On Feb. 4, 2009, PPL (PPL Quote) reported that its Q4 FY08 earnings plunged 33.7%, hurt by lower wholesale energy margins and international delivery earnings along with lesser contribution from special items compared to the year-ago quarter. Net income for the quarter declined to $277.00 million or $0.74 per share from $418.00 million or $1.11 per share in Q4 FY07. PPL's earnings from continuing operations of $0.46 per share were in line with the consensus estimate.

Total revenue surged 56.6% to $2.51 billion from $1.61 billion a year ago. The Supply segment posted a 27.6% drop in earnings per share from ongoing operations to $0.21 per share from $0.29 per share, due to lower wholesale energy margins in the eastern U.S., owing to increasing average fuel prices and lower margins from marketing and trading activities. Pennsylvania Delivery segment's earnings per share from ongoing operations increased 11.1% to $0.10 per share from $0.09 per share, driven by higher delivery revenue. Finally, International Delivery segment reported a 31.8% dip in earnings to $0.15 per share from $0.22 per share, hurt by lower electricity delivery revenue, higher income taxes, and foreign currency translations. ...