DTE Energy Earnings Fall On One-Time Tax Benefit
DETROIT — The utility holding company DTE Energy reported second quarter 2012 earnings of $146 million, or 86 cents a share, down from $202 million, or $1.19 a share, in the same quarter of 2011.
The company noted that the second quarter of 2011 was helped by a one-time benefit of $88 million or 52 cents a share to reduce income tax expense. This non-cash income tax benefit was the result of the enactment of the Michigan Corporate Income Tax in May 2011 and the related remeasurement of deferred tax assets and liabilities at non-utility businesses.
Operating earnings for the second quarter 2012 were $146 million, or 86 cents a share, up from 2011 operating earnings of $111 million, or 65 cents a share. Operating earnings exclude non-recurring items and discontinued operations.
Revenue for the quarter was $2.03 billion, unchanged from a year earlier.
“Record-setting high temperatures in our service territory provided an increase in demand at our electric utility,” said Gerard M. Anderson, DTE Energy chairman, president and CEO. “The hot weather and severe storms we’ve seen so far this summer are reminders of why DTE Energy’s plan to invest $1.4 billion in our distribution system reliability over the next five years is so important.”
Anderson also highlighted new investments in renewable energy.
“Last month, we started full commercial operation of the Gratiot County Wind Park, Michigan’s largest wind project, which will provide the power to serve the equivalent of more than 50,000 homes,” he said. “We have an additional four wind parks under construction in Michigan’s Thumb region that will more than double that capacity by the end of 2013. These are good examples of our ongoing commitment to invest in renewable energy.”
Reported earnings for the first six months ended June 30 were $302 million, or $1.77 a share, down from $378 million, or $2.23 a share, in 2011. Year-to-date operating earnings were $302 million, or $1.77 a share, compared with $299 million, or $1.76 a share, in 2011.
Revenue for the first six months was $4.27 billion, down from $4.46 billion a year earlier.
DTE Energy reiterated its 2012 operating earnings guidance of $3.65 to $3.95 a share.
“Increased electricity usage so far this summer has boosted operating earnings and helped to offset the impact the warm first quarter had on our gas utility’s earnings,” said David E. Meador, DTE Energy executive vice president and CFO. “We remain on track to meet our financial goals for 2012.”
Meador also provided an update on DTE Energy’s commitment to the state of Michigan as part of the Pure Michigan Business Connect initiative to increase spending on goods and services with Michigan-based suppliers.
“We are off to a great start on our 2012 target of $575 million, with $346 million of Michigan spend through June,” said Meador. “This is an $81 million increase over year-to-date June 2011 and illustrates DTE Energy’s commitment to be a force for growth and prosperity in our state.”
The full earnings announcement, as well as a package of slides and supplemental information, is available at www.dteenergy.com.
To listen in on a replay of a conference call discussing these results, available until Aug. 20, call (888) 203-1112 in the United States and Canada and (719) 457-0820 elsewhere and enter passcode 4907918. The call will also be archived at www.dteenergy.com.
DTE Energy (NYSE:DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include Detroit Edison, an electric utility serving 2.1 million customers in southeastern Michigan, MichCon, a natural gas utility serving 1.2 million customers in Michigan and other non-utility, energy businesses focused on gas storage and pipelines, unconventional gas production, power and industrial projects, and energy trading.