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News summary: Lower costs boost Duke Energy profit

The Associated Press

COST CUT: Duke Energy's net income rose 69 percent in the third quarter as costs to complete the company's 2012 merger with Progress Energy fell to $88 million from $457 million last year.

THE BOTTOM LINE: Duke posted net income of $1 billion on revenue of $6.71 billion for the quarter, up from $594 million on revenue of $6.72 billion last year. Adjusted to remove the effects of one-time costs, Duke earned $1.46 per share, a nickel below what analysts surveyed by FactSet had expected on average. The big reason: Mild summer weather reduced demand for air conditioning.

THE OUTLOOK: Duke CEO Lynn Good said higher electric rates that were approved by regulators this year will be in full effect in the fourth quarter. That will give earnings a boost, she said, and help the company hit its profit target for the year.