American Electric Earnings Increase, Boosted by Cold Winter

   By Angela Chen 
 

American Electric Power Co. reported Thursday that first-quarter earnings rose 12%, boosted by the effects of another cold weather.

Chief Executive Nicholas Akins said weather helped both the latest quarter and the year-earlier period, as they were "the coldest and second-coldest winters respectively in our service territory during the past 35 years."

Industrial sales increased by 1.2%, though residential sales fell 4% because of even higher usage the year earlier due to the 2014 polar vertex. Earnings in the transmission business grew to $36 million from $24 million.

Overall, the company reported a profit of $629 million, or $1.29 a share, up from $560 million, or $1.15 a share, a year earlier.

Excluding commodity hedging and other items, per-share earnings were $1.28, up from $1.15 in the prior-year period.

Revenue increased to $4.7 billion from $4.6 billion.

Analysts had expected per-share earnings of $1.10 on revenue of $4.7 billion, according to FactSet.

The company reaffirmed its full-year earnings guidance.

Shares, inactive premarket, have been down about 7.6% this year through Wednesday's close.

Write to Angela Chen at [e-mail]

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