By Dayton Business Journal

DPL Inc. saw its earnings increase as a result of higher retail sales due to improving economic conditions and favorable weather.

The Dayton-based electric utility reported Friday that second-quarter net income rose nearly 46 percent to $61.4 million, or 53 cents per diluted share, from $42.1 million, or 37 cents per diluted share, in the same quarter last year.

DPL (NYSE: DPL) attributed the increase to a number of factors, including:

â¿¢ implementation of the fuel rider and the continued recovery of environmental costs;

â¿¢ increased generation output; and

â¿¢ increased wholesale revenues due to higher wholesale sales and market prices.

⿿Financially and operationally, we had a good quarter,⿝ Paul Barbas, DPL President and CEO, said in a news release. ⿿The improving economy and favorable weather had a positive impact on sales. In addition, the plants performed well, allowing us to capitalize on better than expected wholesale power prices.⿝

Revenue in the second quarter increased $84.3 million, a 23 percent increase, to $445.5 million for the three months ended June 30. In the same period last year, DPL recorded revenue of $361.2 million.

For the first half of the year, DPL revenue increased $120.5 million, or 16 percent, to $896.7 million compared to $776.2 million for the same period last year.

The company reaffirmed its 2010 earnings guidance of $2.35 to $2.55 per share.

DPL is the parent company of local utility Dayton Power & Light Co., which provides electrical service to more than 500,000 retail customers in West Central Ohio.

DPLâ¿¿s stock was down more than 2.6 percent, or 69 cents per share, to $25.21 per share in mid-morning trading.

Copyright 2010 American City Business Journals
Copyright 2010