Higher Electricity Prices Power TXU Gains
NEW YORK - - Texas power company TXU Corp. recently said quarterly earnings rose more than fourfold, boosted by higher retail and wholesale electricity prices.
The Dallas-based company reported first-quarter net earnings of $177 million, or 50 cents a share, compared with $40 million, or 14 cents a share, a year earlier.
Income from continuing operations rose to 57 cents a share from 34 cents a year earlier, helped by strong results at its core energy segment.
Excluding special items, including certain compensation costs, severance expenses and costs to retire gas plants, the company reported earnings of 63 cents a share.
The positive results were partly offset by a drop in retail sales volumes stemming from a loss of customers and lower usage due to milder weather in the quarter. The company's energy delivery segment was also hurt by milder weather, which reduced gas volumes delivered.
The company also reiterated its earnings forecast of $2.45 to $2.55 a share for the year, excluding special items. It also said it expected to report special charges totaling $241 million, or 71 cents a share for the year.
Analysts on average expected the company to report a profit of $2.51 a share for the year, according to Reuters Research, a unit of Reuters Group Plc.
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