American Electric cuts profit forecast, spending plan

COLUMBUS, OHIO - American Electric Power Co., the biggest U.S. producer of power from coal, lowered its 2009 earnings forecast because of the recession and dilution from a planned offering of about 50 million shares. Planned spending next year will be cut by 47 percent.

Earnings from continuing operations, excluding one-time items, will be $2.75 to $3.05 a share, down from an earlier forecast of $3 to $3.40, Columbus, Ohio-based American Electric said in a statement. Proceeds from the planned share sale will be used to reduce debt, the company said in a separate statement.

“In addition to the effect of dilution from our planned stock issuance, the ongoing economic downturn is a significant factor in our revised guidance,” Chief Executive Officer Michael Morris said in the statement. “Retail demand for electricity, primarily from our industrial customers, is down, which has a negative impact on earnings from our regulated utilities.”

The recession also is curbing the sale of power on wholesale markets, Morris said.

Related News

uk-to-end-coal-power-after-142-years

UK to End Coal Power After 142 Years

LONDON - The United Kingdom is poised to mark a significant milestone in its energy history by phasing out coal power entirely, ending a reliance that has lasted for 142 years. This decision underscores the UK’s commitment to combating climate change and transitioning toward cleaner energy sources, reflecting a broader global movement away from fossil fuels. As the country embarks on this journey, it highlights both the achievements and challenges of moving towards a sustainable energy future.

A Historic Transition

The UK’s relationship with coal dates back to the Industrial Revolution, when coal was the backbone of its energy supply,…

READ MORE
powerlines

Octopus Energy and Ukraine's DTEK enter Energy Talks

READ MORE

edmonton electricity meter

Electricity prices spike in Alberta

READ MORE

themoelectric

Cheap material converts heat to electricity

READ MORE

edmonton electric buses

Edmonton's 1st electric bus hits city streets

READ MORE