PSEG 3Q profit falls 26 percent

Public Service Enterprise 3rd-qtr profit falls 26 percent in unfavorable comparison with 2008

• On 2:13 pm EDT, Wednesday October 28, 2009

NEWARK, N.J. (AP) -- Public Service Enterprise Group Inc., which generates, transmits and distributes electric energy, said Wednesday its third-quarter profit fell 26 percent, which compared unfavorably with the same quarter last year.

The weak economy and cool weather cut into demand and pricing, the company said.

Net income of $488 million, or 96 cents per share, compared with $656 million, or $1.29 per share, for the same quarter in 2008. Last year's third quarter included a profit on the sale of discontinued operations of $180 million, or 35 cents per share.

Excluding various one-time earnings in the latest quarter, earnings came to 92 cents per share.

Analysts surveyed by Thomson Reuters expected, on average, earnings of 89 cents per share.

Revenue for the quarter ended Sept. 30 was $3.04 billion, down 18 percent from $3.72 billion in the year-ago period.

Ralph Izzo, chairman, president and CEO, said the Newark, N.J., company felt the impact of the recession and cooler-than-normal weather that reduced demand and pricing. PSEG said it offset most of the decline in demand by recontracting at higher prices, cutting costs and in lease sales, he said.

However, the company still faced trouble meeting the upper end of its range for 2009 earnings per share of $3 to $3.25, Izzo said, although he did not provide further specifics.

Analysts expect $3.10 per share, on average.

Shares of Public Service Enterprise edged up 16 cents to $29.92 in afternoon trading.

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