DTE Energy Says Weather Caused Profit Slump
DETROIT (WWJ) -- DTE Energy (NYSE:DTE) Friday reported net income for the nine months ended Sept. 30 of $537 million, or $3.07 a share, up from $529 million, or $3.08 a share, in 2012.
Year-to-date operating earnings were $541 million or $3.09 a share, up from $529 million or $3.08 a share in 2012. Operating earnings exclude non-recurring items and discontinued operations. Reconciliations of reported earnings to operating earnings are at the end of this news release.
Reported earnings for third quarter 2013 were $198 million, or $1.13 a share, down from $227 million, or $1.31 a share in 2012. A return to near-normal temperatures this quarter from the record-setting high temperatures in DTE Energy's electric service territory last year was partially offset by strong underlying temperature normal sales growth. Additionally, lower earnings this year from the gas segment was more representative of typical historical third quarter performance.
Gerry Anderson, DTE Energy's chairman, president and CEO, said he was pleased with year-to-date results and that the company was on track to meet its earnings guidance for the year. The solid financial results for the first nine months of the year reflect the company's ongoing commitment to improve operations and reduce structural costs, he added.
"These actions provide us the platform that allows us to invest in electric and gas system reliability, and to take an environmental leadership position by increasing our investments in renewable energy and environmental quality," Anderson said.
The company said it will have cut its emissions to the atmosphere by more than 90 percent by 2016, with much of the key work at the Monroe Power Plant.
"Our energy production will evolve significantly over the next decade to include increased quantities of renewable energy and natural gas generation," Anderson said. "We know that the decisions we make will impact the environmental and financial health of the communities we serve, and we will work to ensure that these decisions provide the best balance of cleaner, affordable and reliable energy for our customers."
DTE also tightened its 2013 operating earnings guidance range to $3.95 to $4.15 per diluted share from the previous guidance of $3.90 to $4.20 per diluted share.
"We are confident in our ability to achieve our financial goals in 2013 and are tightening our 2013 operating earnings guidance range," said David E. Meador, DTE Energy executive vice president and CFO. "While our continued efforts to control costs and improve our day-to-day operations are clearly paying off, we have not wavered on our commitment to be a force for growth and prosperity in the communities we serve. Since we made our commitment to increase spending with Michigan-based businesses at the end of 2010, DTE has spent close to $2 billion, representing thousands of new and sustained jobs in the state."
The earnings announcement, as well as a slide presentation and supplemental information, is available at www.dteenergy.com. To listen in on a replay of the conference call discussing the results, call (888) 203-1112 in the United States or (719) 457-0820 elsewhere and enter passcode 8621853.
DTE Energy's operating units include an electric utility serving 2.1 million customers in Southeastern Michigan and a natural gas utility serving 1.2 million customers in Michigan. The DTE portfolio also includes non-utility energy businesses focused on power and industrial projects and energy trading.
More at www.dteenergy.com.
