DTE Energy Co. (DTE) boosted its 2009 earnings outlook as the Detroit-area energy provider credited cost cutting, its non-utility operations and tax benefits.

The company in July said its second-quarter profit nearly tripled on strong results at its energy-trading operations and cost cuts, while electricity sales fell more than expected. Slumping demand has been hurting utility companies across the country, but DTE has been doubly challenged as its home territory of Michigan bears the brunt of declines in the auto and steel industries.

DTE said Monday ahead of a meeting with analysts that it now anticipates 2009 earnings of $3.20 to $3.40 a share, up from the company's longstanding view of $2.75 to $3.05.

But the company cautioned its Detroit Edison and MichCon utilities "continue to face a challenging economic environment."

Chairman and Chief Executive Anthony F. Earley, Jr., added, "Despite our strong year-to-date performance, we are not out of the woods. Our utilities, in particular, face many challenges as we enter 2010 as a result of the weak Michigan economy. At the same time, the company is faced with significant federally-mandated environmental investments."

DTE said it has seen more than $100 million of cost savings this year while still improving service reliability and customer service. The company has 2.2 million electricity customers at Detroit Edison and 1.2 million natural-gas customers at MichCon.

DTE shares were recently up 1% at $36.88 above a broad market rally. The stock is up just 3.4% this year.

-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com