Sierra Pacific Swings to Profit

The first quarter beats targets by 2 cents.
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Sierra Pacific Resources

(SRP)

, an electric utility, said it swung to a profit in the first quarter, helped by strong customer growth and reduced interest expenses.

The Nevada-based company earned $1 million, or 1 cent a share, in the quarter, compared with a loss of $9.5 million, or 8 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting loss of 1 cent a share in the most recent quarter.

First-quarter revenue rose 9% from a year-ago period to $707.1 million as against analysts' expectation of $711 million.

"These positive results are an indication that the company's financial health is continuing to improve, and reflects our ongoing focus on strengthening our core business. It also demonstrates the company's continuing progress in improving shareholder value, and attaining our goals of achieving investment grade status and, ultimately, restoring dividends for our shareholders," the company said.

The company said its subsidiary

Nevada Power Company

lost $3.3 million in the first quarter compared with $8 million, a year ago. First-quarter revenue of NPC rose 7.7% from a year-ago period to $381.3 million.

Its another subsidiary

Sierra Pacific Power Company

earned $12.3 million in the quarter compared with $11.2 million, a year ago. First-quarter revenue of SPPC rose 10.5% from a year-ago period to $325.5 million.

On April 27, the company said that its subsidiary NPC completed its new 75-megawatt generating unit at its Harry Allen Generating site near Las Vegas.

Shares rose 8 cents Friday to $13.81.

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