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