ALLETE – ALE – Pleased to report a strong third quarter
ALLETE, Inc. (NYSE:ALE) reported third quarter 2012 earnings of 78 cents per share on net income of $29.4 million and operating revenue of $248.8 million, compared to 57 cents on net income of $20.5 million and operating revenue of $226.9 million in the third quarter a year ago.
ALLETE benefited from increased energy sales, higher current cost recovery rider revenue and renewable energy tax credits associated with its expanding renewable wind generation portfolio.
“We’re pleased to report a strong third quarter that positions ALLETE to meet its financial targets as we approach year-end,” said ALLETE Chairman, President and CEO Al Hodnik. He said the company has narrowed its earnings guidance range and now expects to finish 2012 with earnings of between $2.50 and $2.60 per share.
ALLETE’s Regulated Operations segment, which includes Minnesota Power, Superior Water, Light & Power and the company’s investment in the American Transmission Company, recorded net income of $29.3 million compared to $23.8 million in the third quarter of 2011. Electric sales to retail and municipal customers were up 3.8 percent compared to the year-ago period.
Sales to Minnesota Power’s industrial customers in 2012 were up 3.5 percent compared to a year ago as the company’s taconite customers continue to produce at near full-capacity levels. Operating and maintenance, depreciation and interest expense increased from the year-ago period.
ALLETE’s Investments and Other segment had net income of $0.1 million in the third quarter, compared to a loss of $3.3 million recorded in 2011. The difference was due primarily to lower state income tax expense.
Quarterly earnings were diluted by four cents per share due to issuances of common shares needed to fund major capital improvements.
“We expect our energy sales to continue to be strong as the regional economy trends in a positive direction,” Hodnik said. “Going forward, potential new industrial customers remain on track with several major projects, we plan to make investments in a major transmission line and an environmental retrofit, and we are close to completion of our Bison 2 and 3 wind energy installations.”
About ALLETE – ALE
ALLETE, Inc. (ALE) is an energy company headquartered in Duluth, Minn. ALLETE’s energy businesses include Minnesota Power, Superior Water, Light & Power Co., BNI Coal and ALLETE Clean Energy.
ALE operates in two business segments: Regulated Operations and Investments and Other. Regulated Operations includes its regulated utilities, Minnesota Power and Superior Water, Light and Power Company (SWL&P), as well as its investment in American Transmission Company LLC (ATC), a Wisconsin-based regulated utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota and Illinois. Investments and Other is comprised primarily of BNI Coal, Ltd (BNI Coal), its coal mining operations in North Dakota; ALLETE Properties, LLC and its subsidiaries (ALLETE Properties), its Florida real estate investment, and ALLETE Clean Energy. In July 2011, ALE incorporated new company, ALLETE Clean Energy.
More Posts by this author
- Stocks Kick-Off November on a Strong Note
- Gold Prices Edge Lower as Dollar Strengthens; Silver Prices Gain
- Stocks Headed for a Higher Finish
- Stocks Extend Gains in Mid-Day Trading
- A. M. Castle & Co. – CAS – Achieved the third quarter profit levels that were anticipated, despite external headwinds
- Dynavax – DVAX – Reports Third Quarter 2012 Results
- Exterran Holdings – EXH – Achieved improved financial results in the third quarter 2012
 |
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
|
