Teco Energy 1Q Profit Down 7.4% On Lower Demand

   DOW JONES NEWSWIRES 
 

Teco Energy Inc.'s (TE) first-quarter profit fell 7.4% as revenue in all its major segments slumped from the prior year, which was helped by exceptionally cold weather.

The results sharply missed Wall Street expecations.

Florida-based Teco had posted improving results over the past year as its main business, utility Tampa Electric Co., benefited from climbing rates and increased demand. In March, Fitch Ratings upgraded the utility company a notch, citing the company's steadily improving results in recent years.

Last year's first-quarter results were skewed by one of the Tampa area's coldest winters in 40 years, however, which sent electricity and natural gas demand soaring at the time.

The company reported a first-quarter profit of $51.7 million, or 24 cents a share, down from $55.8 million, or 26 cents a share, a year earlier. The prior-year quarter included $17.1 million in debt-retirement and restructuring charges. Revenue dropped 13% to $796.1 million.

Analysts polled by Thomson Reuters forecast earnings of 30 cents a share on $880 million in revenue.

The company's Tampa Electric segment posted 34% lower profit as retail sales decreased 12%. Coal earnings fell 51% on flat sales, though average prices climbed about 6%. Earnings slid 18% in the Peoples Gas unit after sales slumped 20%.

Shares were recently off 2 cents to $19.19 in after-hours trading. The stock has gained 11% over the past year.

-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; [e-mail]