Dominion Warns of Profit Shortfall

Natural gas hedges, warm weather pressure results.

Author:: Michael Dunn
Publish date:: Apr 12, 2002 8:17 AM EDT

Dominion Resources

warned that its first-quarter results will fall short of estimates due to natural gas hedges.

The energy company said it expects to see first-quarter earnings per share of about $1.20, flat with the year-ago results. The consensus of Wall Street analysts polled by Thomson Financial/First Call was for $1.28 a share.

Dominion blamed the worse-than-expected results on natural gas corporate hedges, saying that if earnings were adjusted for the timing of these hedges, its EPS would be about $1.33 a share. The company also said earnings were hurt by mild weather, which dropped earnings another 19 cents.

In a press release, the company said it remains confident that these conditions will reverse themselves by year-end, creating better-than-expected earnings for the rest of 2002 and allowing the company to meet its previously stated full-year guidance of $4.90 to $4.95 a share.

According to Thomson Financial/First Call, analysts are expecting the company to earn $4.90 for the full year.

Shares of Dominion closed at $65.90 Thursday on the

New York Stock Exchange

before the news.