Entergy’s earnings plummet, utility will cut 800 jobs

NEW ORLEANS — Entergy Corp. said its second-quarter net income dropped 55 percent, weighed down by higher expenses and absent a favorable tax ruling received during the prior-year period.

EntergyThe New Orleans-based utility also said today that it is cutting about 800 jobs, or about 5 percent of its workforce of 15,000. It says that the job cuts are part of a reorganization plan aimed at saving $200 million to $250 million by 2016.

Entergy earned $163.7 million, or 92 cents per share, for the three months ended June 30. That compares with $365 million, or $2.06 per share, a year earlier.

The year-ago period included favorable tax terms on financing costs for fixing damage to lines and equipment caused by hurricanes Katrina and Rita. Entergy realized a gain of $122 million as a result of the tax ruling.

Stripping out certain items tied to the utilities and wholesale commodities segments, earnings were $1.01 per share.

Analysts polled by FactSet predicted higher earnings of $1.15 per share.

Utility earnings fell mostly because of a much large income tax expense. Depreciation expense and non-fuel operation and maintenance expense also rose. Wholesale commodities earnings declined mostly because of lower revenue and increased decommissioning expense.

Operating revenue climbed 9 percent to $2.74 billion from $2.52 billion, beating Wall Street’s $2.62 billion estimate. Utility revenue rose partly on higher prices and the absence of a regulatory charge.

Entergy Corp. reiterated its 2013 earnings outlook of $4.60 to $5.40 per share. Analysts expect $4.96 per share.

Shares fell 39 cents to $70.18 in midday trading. They have traded in a 52-week range of $61.09 to $74.50 over the past year.

[RSS Feed] [del.icio.us]

To sign up for Mississippi Business Daily Updates, click here.




Twang & Tourism: The Country Music Trail

Our annual "Come See Us" magazine offers ideas for spots in Mississippi ranging from golf to culture to history to food. Click the photo for ideas, stories and access to the digital edition of this year's magazine.

Top Posts & Pages

%d bloggers like this: