Exelon Posts Lower Sales

Exelon Corp. said its revenue and adjusted profit fell in its latest quarter, thanks to mild weather that hit the utility's natural-gas-distribution businesses in Pennsylvania and Illinois.

Still, sales topped expectations and shares edged 1.4% higher in morning trading.

The Chicago-based power company, which is trying to complete its $6.8 billion acquisition of Pepco Holdings Inc. amid regulatory pushback, operates three utilities. Like other energy providers, Exelon said unseasonably warm weather at the end of the year hurt fourth-quarter results.

Profit at the company's PECO segment, which provides electricity and natural gas to about 2.1 million customers in southeastern Pennsylvania fell to $79 million from $98 million a year earlier amid record December temperatures in the eastern part of the U.S. Better performance in Exelon's other businesses helped offset that decline. In its ComEd segment, which services nearly four million customers in Illinois, earnings rose to $87 million from $73 million. Exelon's generation segment, which includes nuclear energy and provides power to customers across five states, swung to a profit of $154 million, compared with a loss of $91 million a year earlier.

Over all, Exelon reported a profit of $309 million, or 33 cents a share, up from $38 million, or five cents, a year earlier. Excluding a $51 million one-time gain, merger costs, asset impairments and other items, earnings per share fell to 38 cents from 48 cents.

Operating revenue slid 7.6% to $6.70 billion. Analysts projected 40 cents in adjusted per-share profit on $5.74 million in revenue, according to Thomson Reuters.

For the year, Exelon expects to earn $2.40 to $2.70 in adjusted earnings per share, bracketing the $2.52 average analyst estimate. The company also said it intends to raise its dividend by 2.5% each year over the next three years. Exelon has paid out 31 cents a quarter since mid-2013.

Write to Lisa Beilfuss at [e-mail]

(END) Dow Jones Newswires

February 03, 2016 10:35 ET (15:35 GMT)

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