Entergy’s earnings plummet, utility will cut 800 jobs
Published: July 30,2013
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.
The 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.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Alcorn president launches new customer service task force
- NEW IN MADISON COUNTY — Mississippi Bio-Medical Business Collaboratory to be introduced Friday
- David Duval, former British Open winner, joins Sanderson Farms field
- Court rules against Greenwood councilwoman; must give up office
- GreenTech holds grand opening of neighborhood electric vehicle plant
- Turner Grain’s bankruptcy will help consolidate lawsuits alleging breach of contract
- Cochran continues to reach out to African American voters
- Peoples Bank reports quarterly loss due to bad loans
- Senators write letter over Waters of the United States proposal