Due to higher expenses, Exelon Energy’s third-quarter earnings have dropped from last year. The latest reports show income decreasing from 780 million, or $1.15 a share a year ago to $700 million, or $1.06 per share. Although this was below analyst’s expectations of $1.13/share, the decrease was partially due to some one-time big ticket expenses. as BullishBankers.com notes below:
During the last quarter, Exelon also encountered a few special items including an $80 million charge for a 2007 electric rate settlement, and income of $17 and $18 million from decreases in decommissioning obligations and positive investments in synthetic fuel-producing activities. Excluding these special items, operating income for the quarter was $706 million, $1.07 per diluted share, versus $823, $1.21 per diluted share, from a year ago.
Other expenses included unfavorable weather, i.e. there were too many days when Exelon’s customers didn’t have to crank up the AC. Inflation and increased labor costs also took a toll. However, the nuclear portion of Exelon’s energy portfolio performed well, offsetting some of those losses. Despite the drop in earnings this quarter, the outlook for Exelon is stable, according to President and CEO John W. Rowe
“We expect to be well within our original 2008 earnings guidance range, but due to the effects of these unfavorable items, such as weather and macro economic factors, we expect our full-year 2008 results to be near the bottom of the $4.15 to 4.30 per share range that we announced on September 4th.”