DOW JONES NEWSWIRES
Progress Energy Inc.'s (PGN) fourth-quarter net income rose 4%
amid improved margins due to lower depreciation costs.
The tight credit market combined with slipping demand has
pinched electric utilities, who are struggling to keep rates low
while generating enough funds to support their own expenses. To
boost liquidity, Progress Energy last month joined a host of
companies to cut capital spending, saying it would lower its
planned 2009 target by $250 million.
The company posted net income of $107 million, or 41 cents a
share, up from $103 million, or 40 cents a share a year earlier.
Discontinued operations and other impacts shaved 6 cents from the
latest quarter's profit.
Revenue fell 2% to $2.16 billion.
Analysts polled by Thomson Reuters expected 46 cents per share
and $2.35 billion, respectively.
Operating margin increased to 14.9% from 12.9% on the drop in
depreciation costs caused by the company's accelerated
cost-recovery program for its nuclear power plants.
Progress Energy, which reiterated its 2009 earnings forecast,
has reduced business risk by exiting non-regulated businesses,
including a merchant plant and a natural gas exploration and
production business. Instead, the company has focused on developing
new power plants.
Shares of Progress Energy, which are off 15% from its 52-week
high, closed Wednesday at $38.70. There was no premarket
trading.
-By Katherine E. Wegert, Dow Jones Newswires; 201-938-5400;
katherine.wegert@dowjones.com
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