DOW JONES NEWSWIRES 
 

DTE Energy Co.'s (DTE) second-quarter profit nearly tripled on strong results at its energy-trading operations and cost cuts, while electricity sales fell more than expected.

"While DTE Energy's focus on cost reductions helped us achieve solid financial results this quarter, we continue to face significant challenges related to the weak economy," said Chief Executive Anthony Earley Jr.

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 reported a profit of $83 million, or 51 cents a share, up from $28 million, or 17 cents a share, a year earlier. The company's energy-trading operations had $24 million in profit, compared with a prior-year loss of $17 million.

Operating earnings, which exclude unusual and hedging items, rose to 56 cents a share from 16 cents. Analysts estimated per-share operating earnings of 15 cents, according to a poll by Thomson Reuters.

Revenue dropped 25% to $1.69 billion.

Beyong the trading performance, cost cuts also helped the bottom line, with fuel down 44% and overhead down 21%. That helped Detroit Edison, DTE's largest unit, where earnings jumped 61%. The company's natural-gas utility reported a wider loss on lower margins and higher depreciation and interest costs.

Shares of DTE, which backed its 2009 earnings target, shares rose 0.5% to $35.24 in after-hours trading. The stock has gained about 50% from a 12-year low in March.

-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com