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
Ameren, Safe Electricity urge safety near downed lines
CAROLINA - Ameren Illinois and Safe Electricity are urging the public to stay in their cars and call 911 in the event of an accident involving a power pole that brings down power lines on or around the car.
In a media simulation Tuesday at the Ameren facility on West Lafayette Avenue, Ameren Illinois employees demonstrated the proper way to react if a power line has fallen on or around a vehicle. Although the situation might seem rare, Illinois motorists alone hit 3,000 power poles each year, said Krista Lisser, communications director for Safe Energy.
“We want to get the word out…
