Exelon Corporation’s fourth-quarter earnings fell a less-than-expected 18 percent as the utility was hurt by unfavorable weather conditions and reduced demand, pressuring margins.
“Despite the impact of adverse economic, market and weather conditions, we achieved our financial and operating commitments” for 2009, said Chairman and Chief Executive John Rowe.
Utilities have struggled as consumer demand has waned during the recession. Exelon last month said it planned to close four units, which burn fossil fuels, at two of its Philadelphia power plants because of reduced demand and inefficient operations.
Exelon is the nation’s biggest generator of nuclear power.
The company reported a profit of $581 million, or 88 cents a share, down from $707 million, or $1.07 a share, a year earlier. Results for the latest quarter included a net 4 cents in charges. Revenue dropped 8.4 percent to $4.12 billion.
Analysts polled by Thomson Reuters had most recently forecast earnings of 86 cents on $5 billion in revenue.
Operating margin fell to 26.1 percent from 29.7 percent as output from the company’s fleet of nuclear generators fell 3.7 percent. As such, generation earnings fell 23 percent. Single-digit declines were seen at Exelon’s utilities.
Shares of Exelon, which also reiterated its 2010 earnings guidance, closed at $48.05 Thursday and were inactive premarket.
Read the original article from Tribune News Services.