American Electric Hits Low On Outlook Reduction

NEW YORK (AP) — Shares of American Electric Power Co. fell to a multi-year low Tuesday, a day after the power generator slashed its 2009 earnings forecast and said it would issue more stock and cut capital spending.

After the market closed on Monday, the Columbus, Ohio-based company lowered its 2009 earnings-per-share forecast to a range of $2.75 to $3.05 from a prior prediction of $3 to $3.40.

The power company said it plans to sell about 50 million shares to the public, and underwriters could get another 7.5 million shares to cover over-allotments. The total would equal about 14 percent of the company's current shares, according to a recent regulatory filing. AEP said it would use the proceeds to reduce debt. ...