Duke 2Q earnings rise 20 percent
Power generator Duke Energy Corp. said Tuesday its earnings rose 20 percent in the second quarter with strong performances reported across nearly all of its operations.
Charlotte, N.C.-based Duke said it made $351 million, or 28 cents a share, for the quarter ended June 30 compared with $293 million, or 23 cents per share, in the second quarter of 2007. Revenue rose to $3.2 billion in the quarter from $3 billion a year ago.
Duke recorded a $100 million charge in the quarter because its real estate joint venture with Morgan Stanley Real Estate Fund, called Crescent Resources LLC, restructured the terms of its corporate credit facility. Crescent Resources is a real estate development and land management company focused on the Southeast and Southwest.
The charge was offset, however, by a $107 million accounting gain on hedges in Duke's commercial power segment.
Analysts surveyed by Thomson/IFR expected profits of 25 cents a share on revenue of $3.1 billion. Those estimates typically exclude one-time events.
Duke's commercial power operations made $235 million from continuing operations, compared with $64 million in the year-ago quarter, helped by the accounting gains, gains on the sales of emission allowances and improved operations. The gains were partially offset by milder weather in the Midwest.
Chief Financial Officer David Hauser said the company is seeing weakness in some of its service areas, notably the continuing erosion of the textile business in the Carolinas. He said there was strength in Indiana, helped by the steel industry.
Year to date, Duke has recorded a profit of $816 million, or 64 cents per share, compared with $650 million, or 51 cents per share, a year ago. Revenue rose $6.6 billion from $6 billion through the first two quarters of last year.
Duke shares rose 29 cents, or 1.7 percent, to $17.66 Tuesday. The shares have traded between $16.77 and $20.78 in the last year.
Duke delivers natural gas and electricity to about 4.4 million customers in the Carolinas, Indiana, Ohio and Kentucky. It also operates utility assets in Latin America.
