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Constellation Energy Group Inc. (CEG) reported Tuesday that it swung to a first-quarter loss on $271.2 million on charges related to divestitures and a failed merger as the company said its realignment was on track.

Like other electricity providers, the company has been slammed by volatile commodities prices. Constellation has been selling assets and looking for buyers for others as it continues to cut back its commodities business, which nearly ran aground last year.

The woes led to a planned acquisition by MidAmerican Energy Holdings Co., owned by Berkshire Hathaway Inc. (BRKA). But that deal was scrapped in December as Constellation instead agreed to sell half its nuclear-power business to Electricite de France SA (EDF.FR) for $4.5 billion.

Constellation Chairman and Chief Executive Mayo Shattuck said Tuesday that Constellation's de-risking activities and restructuring plan it began in August caused the quarter's loss. The red ink totaled $123.5 million, or 62 cents a share, compared with year-earlier earnings of $145.7 million, or 81 cents a share.

Excluding the effects from the divestitures, merger termination and write-downs, earnings fell to 74 cents from 95 cents. Revenue decreased 11% to $4.3 billion.

Analysts polled by Thomson Reuters expected earnings of 70 cents on revenue of $4.38 billion.

Shares recently traded down 5.2% to $23.91.

First-quarter results showed progress by Constellation's management in restructuring the company after a near-collapse last year, but plenty of risk remains in the process, said Travis Miller, an equity analyst with Morningstar & Co.

"Certainly the turnaround is not complete. There are many steps left to go," he said.

Constellation's Baltimore Gas & Electric utility posted an earnings increase of 11% on the timing of expenses, partially offsetting increased bad-debt costs.

The merchant-energy division, which operates power plants, reported an earnings fall of 43% on woes in the commodity business.

Constellation management, during a conference call with analysts Tuesday, said the sale of its international operations, U.S. natural gas trading business and other divestitures will result in a total of $271 million in losses in the first half of the year. The company expects to report $65.4 million in losses in the second quarter from the divestitures.

Executives said Constellation sold the riskier businesses at below their book value to improve the energy company's collateral more rapidly. Constellation estimated its net available liquidity as of last week at $4 billion, up from $2.4 billion at the end of last year.

Over the winter, Constellation agreed to sell most of its European energy-trading units and coal and freight operations to a Goldman Sachs Group Inc. (GS) affiliate, while Australian bank Macquarie Group Ltd. (MQBKY) agreed to buy the company's downstream natural gas business.

Constellation continues to expect the deal with EDF to close in the third quarter. Shattuck said Constellation will look increasingly to match its generation business with its customer power supply business, possibly adding generation where it has customer load.

The company also on Tuesday reaffirmed its earnings guidance of $2.90 to $3.20 a share this year and $3.05 to $3.45 a share for 2010.

-By Mark Peters and Kerry E. Grace, Dow Jones Newswires; 201-938-4604; mark.peters@dowjones.com