FPL Group Stands By Outlook

The company says second-quarter revenue rises 16% from a year ago.
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FPL Group

(FPL) - Get Report

, the owner of Florida Power & Light, reported a drop in second-quarter earnings Friday, citing higher maintenance costs and employee benefits, but the utility company met estimates and affirmed its outlook for the year.

The company posted earnings of $239 million, or $1.34 a share, compared with $250 million, or $1.46 a share, in the year-ago period. Revenue rose 16% to $2.46 billion from $2.13 billion a year earlier.

Excluding items in both quarters, net income fell to $241 million, or $1.35 a share, from $249 million, or $1.45 a share, the previous year. On that basis, Wall Street had predicted earnings of $1.35 a share, according to Thomson First Call.

"FPL continues to enjoy strong customer and underlying usage growth; however, our results in the quarter were tempered somewhat by milder weather compared to the prior year quarter," Chairman and Chief Executive Lew Hay said in a written statement.

Hay also said the company had higher operations and maintenance expenses and greater health care and insurance costs during the quarter.

Florida Power & Light, the group's main unit, had a 2.9% decline in earnings to $199 million, while profit at FPL Energy, its wholesale energy subsidiary, climbed 29% to $49 million.

FPL said it remains comfortable with its full-year earnings outlook of $4.80 to $5 a share, excluding items. That compares with analysts' estimates of $4.91 a share.