DTE Energy Earnings Fall Due To Cooler Weather

DETROIT (WWJ) -- DTE Energy (NYSE: DTE) Friday reported second quarter 2013 net income of $105 million, or 60 cents a share, down from $146 million, or 86 cents a share in 2012. The company said the decline was due mostly to lower earnings at DTE Electric Co. as a result of abnormally hot weather in 2012.

Operating earnings for the second quarter 2013 were $109 million, or 62 cents a share, down from $147 million or 87 cents a share a year earlier. Operating earnings exclude non-recurring items and discontinued operations.

Net income for the first half of the year was $339 million or $1.94 a share, up from $302 million or $1.77 a share in the first half of 2012. Year-to-date operating earnings were $343 million or $1.96 a share, up from $303 million or $1.78 a share in 2012.

"I am pleased with our year-to-date financial performance and we are on track to achieve our 2013 goals," said Gerard M. Anderson, DTE Energy chairman, president and CEO. "I am also very proud of the ongoing dedication of our employees to our continuous improvement effort and the positive impact it has on customer service and rate affordability."

Anderson also noted that customers can expect to see a reduction in their monthly bills resulting from an amended renewable energy plan DTE Energy recently filed with the Michigan Public Service Commission.

"When this plan is approved, residential and business customers' rates will be reduced by almost $90 million per year because we have found ways to improve the economics of wind turbines installed in recent years," Andereson said.

DTE Energy reiterated its 2013 operating earnings guidance of $3.90 to $4.20 per diluted share.

"While last year's second quarter operating earnings were boosted by record-setting temperatures, we are on track to realize our financial and operational goals for this year," said David E. Meador, DTE Energy executive vice president and CFO.

Meador also provided an update on the company's commitment to the State of Michigan to increase spending on goods and services with Michigan-based suppliers.

"We have spent $364 million with Michigan suppliers through the first half of the year, a 25 percent increase over our year-to-date budget of $288 million," Meador said.

Last month, DTE said it would significantly increase its commitment to the Pure Michigan Business Connect initiative from its original target of $750 million, to $1 billion of incremental spending with Michigan suppliers. The original $750 million of incremental spend will be achieved by the end of this year, two years ahead of the five-year commitment established in 2011.

To listen to a replay of a conference call discussing the results, visit www.dteenergy.com/investors. A telephone replay is available at (888) 203-1112 in the United States or (719) 457-0820 elsewhere and enter passcode 8621853.

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 DTE Electric, an electric utility serving 2.1 million customers in Southeastern Michigan, DTE Gas, a natural gas utility serving 1.2 million customers in Michigan and other non-utility, energy businesses focused on gas storage and pipelines, power and industrial projects, and energy trading. Information about DTE Energy is available at dteenergy.com, twitter.com/dte_energy and facebook.com/dteenergy.