American Electric cuts profit forecast, spending plan
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

US power coalition demands action to deal with Coronavirus
WASHINGTON - Renewable energy and other trade bodies in the US are calling on Capitol Hill to extend provision of tax incentives to help the sector “surmount the impacts” of the COVID-19 pandemic.
In a signed joint letter, the American Council on Renewable Energy (ACORE), American Wind Energy Association (AWEA), Energy Storage Association (ESA), National Hydropower Association (NHA), Renewable Energy Buyers Alliance (REBA), and the Solar Energy Industries Association (SEIA) stated: “With over $50bn in annual investment over each of the past five years, the clean energy sector is one of the nation’s most important economic drivers. But that growth is…