Dive Summary:
- American Electric Power (AEP), owner of the largest electricity transmission system in the U.S., had its third-quarter profits drop by 48% and revenue decrease by 2.3%.
- The decline in earnings for AEP, which serves 5 million customers in 11 states, comes as a result of low demand, loss of customers and storm clean-up costs.
- AEP's diminished profits come as no surprise to the Bloomberg-assembled panel of analysts that predicted this would happen.
From the article:
"American Electric Power Co. (AEP), which delivers electricity to more than 5 million customers in 11 states, said third-quarter profit fell 48 percent on customer defections, storm clean-up costs and sluggish demand for electricity.
Net income decreased to $487 million, or $1 a share, from $928 million, or $1.92, a year earlier, as revenue fell 2.3 percent to $4.2 billion, Columbus, Ohio-based American Electric said in a statement today. Excluding one-time costs, per-share profit was 1 cent less than the $1.03 average of 15 analysts’ estimates compiled by Bloomberg. ..."