Hot Summer, Gas Margins Boost DTE Energy Earnings
DETROIT -- The Detroit-based utility holding company DTE Energy Wednesday reported third quarter 2012 earnings of $227 million, or $1.31 a share, up from $183 million, or $1.07 a share, in the same quarter of 2011.
Reported earnings increased primarily due to the effects of warm weather at DTE's electric utility subsidiary, Detroit Edison, improved results for DTE's gas utility subsidiary, MichCon, and growth in reduced emissions fuel at DTE's Power & Industrial subsidiary. Those gains were partially offset by lower earnings in DTE's energy trading operations.
Said Gerard M. Anderson, DTE Energy chairman, president and CEO: "Financial results are solid, operational metrics are on target and I'm very happy to report that recent survey results show improved customer satisfaction."
Recent J. D. Power and Associates studies showed DTE Energy's gas utility ranked third among 17 Midwestern gas utilities for customer satisfaction, and the electric utility's customer satisfaction ranking has also increased over the past year.
"Weather events and storms play a major role in power reliability," Anderson said. "In a summer that included record-setting heat and intense storms, the extra efforts of our employees to deliver quality customer service are being recognized and appreciated."
Reported earnings for the first nine months ended Sept. 30, 2012 were $529 million, or $3.08 a share, versus $561 million, or $3.30 a share, in 2011.
DTE Energy increased its 2012 operating earnings guidance of $3.65 to $3.95 per diluted share to $3.80 to $4.
"Above average temperatures during the summer increased demand and revenues at our electric utility, more than offsetting the winter's warm weather impact on our gas utility," said David E. Meador, DTE Energy executive vice president and CFO. "We are revising guidance to reflect these weather influences, as well as other economic developments that have impacted our year-to-date earnings."
Meador also commented on DTE Energy's recent announcement to increase 2012 planned spending with Michigan-based companies from $575 million to $700 million by Dec. 31. The company spent $558 million with Michigan-based suppliers through September 2012, compared with $401 million during the same period a year ago.
"I'm proud of the way our company has embraced the state's Pure Michigan Business Connect initiative. DTE Energy's Michigan spend represents more than 6,800 full-time jobs over the last two years as a result of our commitment to be a force for growth and prosperity in our state," Meador said.
The 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 in the United States and Canada or (719) 457-0820 elsewhere and enter passcode 5922498.
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. Information about DTE Energy is available at www.dteenergy.com, www.twitter.com/dte_energy and www.facebook.com/dteenergy.
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