Hurt by a mandatory refund in Ohio, American Electric Power (NYSE:AEP) revealed on Friday a narrowed fourth-quarter profit, however the power generator still reaffirmed its fiscal 2011 view.
The Columbus, Ohio-based company posted net earnings of $176 million, or 37 cents a share, compared with $238 million, or 50 cents a share, in the same quarter last year.
Excluding one-time items, AEP earned 38 cents a share, just short of average analyst estimates polled by Thomson Reuters of 40 cents.
Revenue for the generator and distributor of electric power was $3.4 billion, up slightly from $3.3 billion a year ago, missing the Street’s view of $3.55 billion.
“We had solid financial performance for both the fourth quarter and the year,” said Michael Morris, AEP chief executive. “We have seen three consecutive quarters of increased industrial sales while the economy continues to slowly recover in the areas we serve.”
AEP also attributed the improved revenues to favorable weather impacts throughout the year, which it said helped to offset the slow economic recovery. Earnings were partially cushioned by cost-reduction initiatives implemented during the second-quarter.
Despite upward trends, AEP took a $43 million hit to refund Columbus Southern Power customers with the completion of a test required of electric utilities in Ohio.
Still, the company reaffirmed its fiscal 2011 guidance in the range of $3 to $3.20 a share.