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FirstEnergy Announces Second Quarter 2014 Financial Results
Affirms 2014 Earnings Guidance



Aug 5, 2014

FirstEnergy Corp. (NYSE: FE) announced second quarter 2014 basic operating (non-GAAP) earnings* of $0.49 per share of common stock. These results exclude the impact of the special items listed below. This compares to basic operating (non-GAAP) earnings of $0.59 per share of common stock in the second quarter of 2013.

On a GAAP basis, the company reported basic earnings of $0.16 per share of common stock ($0.15 diluted) in the second quarter of 2014 on earnings of $64 million and revenue of nearly $3.5 billion. In the second quarter of 2013, the company reported a loss of $164 million, or $0.39 per share, with revenue of more than $3.5 billion.

"Through the second quarter, our regulated distribution and transmission businesses have produced solid results that are in line with our expectations," said FirstEnergy President and Chief Executive Officer Anthony J. Alexander. "Based on these results, and our expectations for the remainder of the year, we are re-affirming our full-year 2014 operating earnings guidance of $2.40 to $2.60 per share.

"We are making steady progress with our plans to focus on growth through our regulated businesses," Alexander said. "Our Energizing the Future transmission investment program is well underway, and we now have pending rate cases in Ohio, Pennsylvania, West Virginia and New Jersey that are designed to enhance electric service for our utility customers," he said."In addition, we are taking actions to place our competitive business in a much stronger position by reducing our exposure to weather-sensitive retail loads, maintaining a more open position to take advantage of market upside opportunities, and reducing or delaying some capital expenditures at our generating fleet."

Second quarter 2014 operating (non-GAAP) earnings reflect lower commodity margin at the competitive business, higher operating expenses, principally in the Regulated Distribution segment; and higher expenses related to benefits, depreciation and interest, partially offset by higher transmission revenues, investment income, capitalized financing costs, a lower effective tax rate, and a benefit from the impact of the West Virginia asset swap.

Operating earnings from the company's distribution business decreased compared to the second quarter of 2013, primarily as a result of an increased focus on maintenance and vegetation management work this year. Total distribution deliveries increased less than 1 percent, largely due to milder temperatures in the second quarter of 2014. Sales to residential customers decreased 2 percent. Deliveries to commercial customers increased 1 percent, while sales to industrial customers increased by 2 percent compared to the second quarter of 2013.

Operating earnings from the transmission business increased as a result of higher revenues and capitalized financing costs related to the company's Energizing the Future transmission investment program.

In the company's Competitive Energy Services segment, operating earnings were impacted by lower commodity margin, higher investment income and lower retail operations and maintenance expenses. The decrease in commodity margin was primarily due to lower energy prices at the time the sales were committed, as well as lower contract and wholesale sales volumes. Compared to the second quarter of 2013, total contract sales fell 6 percent and the total number of retail customers decreased slightly, reflecting the company's more selective retail strategy.

For the first half of 2014, the company reported net income of $272 million, or $0.65 per basic and diluted share of common stock, on revenue of nearly $7.7 billion. This compares to net income of $32 million, or $0.08 per basic and diluted share of common stock, on revenue of more than $7.2 billion in the first six months of 2013.

Click here to read the full press release.

For more information :

Organization:
FirstEnergy Corp.
www.firstenergycorp.com


Link http://www.electricenergyonline.com/detail_news.php?ID=490707
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