Exelon Profit Dampened by Weather, Expenses -- Update

By Chelsey Dulaney 

Exelon Corp. posted sharply lower earnings in its fourth-quarter amid unfavorable weather and a surge in expenses, though revenue topped Wall Street expectations.

The Chicago-based power company has been makings acquisitions lately, most notably a $6.8 billion deal to buy Pepco Holdings Inc. as it seeks to expand its reach and customer base. The deal is expected to close later this year.

Profit at the company's PECO segment, which does electricity and retail natural gas transmission in southeastern Pennsylvania, fell to $98 million from $102 million a year earlier.

Profit at the ComEd segment, which consists of electricity transmission and distribution operations in Northern Illinois, fell 33% to $73 million.

Its generation segment swung to a loss of $91 million from a year-earlier profit of $269 million.

Overall, the company posted a profit of $18 million, or 2 cents a share, down from $495 million, or 58 cents a share, a year earlier.

Excluding the impact of hedging activities and other items, per-share earnings were 48 cents.

Operating revenue grew 17.5% to $7.26 billion. Adjusted revenue grew to $6.94 billion from $6.25 billion a year earlier.

Analysts polled by Thomson Reuters had forecast earnings of 50 cents a share and revenue of $5.83 billion.

Expenses grew 32.6% to $7.02 billion in the quarter.

For 2015, Exelon forecast operating earnings, excluding items, of $2.25 to $2.55 a share, in line with analysts' expectations for $2.48 a share in earnings, according to Thomson Reuters.

Write to Chelsey Dulaney at [e-mail]

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