Ameren 3Q profit rises despite revenue drop

Utility Ameren says 3Q profits rise despite revenue drop; narrows 2009 guidance

• On 1:22 pm EDT, Friday October 30, 2009

ST. LOUIS (AP) -- Energy utility Ameren Corp. said Friday its third-quarter profit rose as cost cuts and utility rate adjustments helped offset a 12 percent drop in revenue due to diminished demand.

The company also narrowed its 2009 earnings forecast because of fewer sales in the third quarter due to cooler weather and a sluggish economy.

For the July-September period, Ameren reported net income of $227 million, or $1.04 per share, compared with $204 million, or 97 cents per share, in the third quarter of 2008.

Excluding special items, Ameren said third-quarter net income was $255 million, or $1.16 a share, compared with net income of $246 million, or $1.17 a share, a year ago.

Revenue totaled $1.82 billion, down from $2.06 billion in the previous year as Ameren's kilowatt hour sales dropped 10 percent for residential customers, 3 percent for commercial customers and 13 percent for industrial customers.

Analysts surveyed by Thomson Reuters had forecast, on average, earnings of $1.03 per share on revenue of $2.1 billion. Such estimates typically exclude one-time gains and charges.

Ameren said it received utility rate adjustments in Illinois and Missouri and reduced operations and maintenance expenses. It also achieved a revenue-leveling effect of natural gas rate redesign in its Illinois regulated utility segment.

For the year, Ameren forecast per-share earnings ranging from $2.57 to $2.77. Previously, it had estimated a per-share range between $2.63 and $2.98. Wall Street has estimated 2009 earnings at $2.81 per share.

Ameren provides electricity and natural gas in Missouri and Illinois. Its share price fell 64 cents, or 2.5 percent, to $24.69 in afternoon trading.

Buzz up!