DTE Energy Co. (DTE) boosted its 2009 earnings outlook as the
Detroit-area energy provider credited cost cutting, its non-utility
operations and tax benefits.
The company in July said its second-quarter profit nearly
tripled on strong results at its energy-trading operations and cost
cuts, while electricity sales fell more than expected. 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 said Monday ahead of a meeting with analysts that it now
anticipates 2009 earnings of $3.20 to $3.40 a share, up from the
company's longstanding view of $2.75 to $3.05.
But the company cautioned its Detroit Edison and MichCon
utilities "continue to face a challenging economic
environment."
Chairman and Chief Executive Anthony F. Earley, Jr., added,
"Despite our strong year-to-date performance, we are not out of the
woods. Our utilities, in particular, face many challenges as we
enter 2010 as a result of the weak Michigan economy. At the same
time, the company is faced with significant federally-mandated
environmental investments."
DTE said it has seen more than $100 million of cost savings this
year while still improving service reliability and customer
service. The company has 2.2 million electricity customers at
Detroit Edison and 1.2 million natural-gas customers at
MichCon.
DTE shares were recently up 1% at $36.88 above a broad market
rally. The stock is up just 3.4% this year.
-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com