DETROIT — Detroit-based DTE Energy (NYSE: DTE) Thursday reported 2011 net income of $711 million or $4.18 a share, up from $630 million or $3.74 a share. However, the increase was due to a one-time gain of $87 million, or 50 cents a share, in an adjustment to income tax expense related to the enactment of the Michigan Corporate Income Tax in May.
Revenue for the year was $8.9 billion, up from $8.56 billion a year earlier.
Operating earnings in 2011 were $633 million, or $3.73 per diluted share, compared with 2010 operating earnings of $607 million, or $3.60 per diluted share. Combined operating earnings at DTE Energy’s electric and gas utilities in Michigan grew slightly. Higher earnings at DTE Energy’s Energy Trading business were offset by lower earnings at Power & Industrial Projects. Reductions in Corporate & Other costs also contributed to the earnings improvement.
For the fourth quarter, . Revenue for the quarter was $2.17 billion, unchanged from a year earlier. Net income for the quarter was $150 million or 88 cents a share, down from $152 million or 90 cents a share a year earlier.
Gerard M. Anderson, DTE Energy’s chairman, president and CEO, said he was proud of the company’s 2011 performance and its contribution to Michigan’s recovery.
“As one of the largest investors in the state of Michigan, DTE Energy is delivering on its commitment to be a force for renewed growth and prosperity in the communities we serve,” Anderson said. “As part of our involvement in the Pure Michigan Business Connect Initiative, we pledged to invest $750 million in new business with Michigan-based suppliers over the next five years. We got off to a great start on this initiative in 2011, increasing our purchases from Michigan companies by nearly $125 million to approximately $600 million. Our experience shows that Michigan companies deliver quality products at a competitive price. Doing business with them is a win-win situation; it’s good for both our state and DTE Energy.”
DTE Energy announced 2012 operating earnings guidance of $3.65 to $3.95 per diluted share.
Added David E. Meador, DTE Energy executive vice president and CFO: “We made good progress in our multi-year plan to invest in renewable energy, environmental controls and system reliability. These investments will benefit our customers by increasing our ability to deliver cleaner, more reliable energy. At the same time, we continue to tightly control our cost structure to help keep energy affordable for our customers.”
When highlighting recent investments, Meador noted:
* DTE Energy invested more than $600 million in 2011 in projects and programs to improve electrical system reliability.
* In 2011, 64 turbines were erected as part of the company’s Gratiot Wind Park. When completed, this will be the state’s largest wind farm with more than 130 turbines spanning approximately 30,000 acres. This project also will generate tax revenue for schools, fire and police protection, road repair and other improvements.
* DTE Energy started construction of the Michigan Thumb Wind Parks, the next big wind park project. This represents a $250 million investment and is expected to be operational by the end of 2012.
* DTE Energy was presented the “Utility Green Power Program of the Year” award by the U.S. Department of Energy for its leadership in promoting renewable energy through the company’s GreenCurrents program.
This earnings announcement, as well as a package of slides and supplemental information, is available at www.dteenergy.com.
To listen to a replay of a conference call discussing the results. call (888) 203-1112 or (719) 457-0820 and enter passcode 2033474.
DTE Energy 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. Information about DTE Energy is available at www.dteenergy.com .