Duke Energy on Tuesday said second-quarter net income fell 17% on one-time items, but the energy company's operating income rose as it said it would beat its year-end profit target.
Duke Energy (DUK :18.55, +0.65, +3.6% ) said second-quarter net income slipped to $293 million, or 23 cents a share, from $355 million, or 28 cents a share, a year earlier.
Earnings from continuing operations rose to 24 cents compared with 16 cents in the year ago period.
The higher ongoing results reflect improved results at U.S. Franchised Electric and Gas and Commercial Power, primarily due to favorable weather, as well as improved results at Duke Energy International.
Operating revenue rose 4.8% to $3.04 billion. The average forecast of analysts polled by Thomson Financial was for earnings of 20 cents a share and revenue of $3.05 billion.
The company said with normal weather for the rest of the year it expects to exceed its target for fiscal 2007 earnings of $1.15 a share "We're very pleased with the strong performance of our major business units," said Chairman, President and Chief Executive Officer James E. Rogers.
Charges in the latest quarter included $12 million for its Cinergy merger and another $12 million in severance costs in its information technology unit. Costs in the year-ago quarter included $74 million for its merger with Cinergy, and a $55 million impairment on its Campeche investment.
by Steve Gelsi
by Steve Gelsi