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AEP's 4Q profit jumps 75 pct thanks to ruling

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[January 28, 2012]  COLUMBUS, Ohio (AP) -- American Electric Power Co. said Friday that its fourth-quarter earnings surged 75 percent, largely due to a court decision in Texas that went in the company's favor.

The power supplier said that its net income rose to $308 million, or 64 cents per share, in the three months ending Dec. 31. That compares with $176 million, or 37 cents per share, a year ago.

AEP said a Texas Supreme Court ruling that reversed an unfavorable state regulatory ruling was worth $558 million to the company's bottom line. The company's revenue for the quarter held steady at $3.4 billion.

Excluding special items, AEP earned $194 million in the quarter, or 40 cents a share. Analysts polled by FactSet expected adjusted earnings of 41 cents a share on revenue of $3.1 billion. Those estimates typically do not include special items.

By early afternoon Friday, AEP's stock was down $1.34, or 3.2 percent, at $39.94. The shares have traded in a range of $33.09 to $41.98 over the past year.

"We had solid financial performance for both the fourth quarter and the year," president and CEO Nicholas Akins said in a statement. "We benefited from favorable weather conditions throughout most of the year, and our industrial volumes were up 4 percent in 2011."

AEP's industrial sales have had a tough recovery from a recession which sapped demand for power from manufacturers and other major customers that closed plants and made other cutbacks.

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For the full year, AEP said that its net income rose to $1.9 billion, or $4.02 per share, from $1.2 billion, or $2.53 per share, in 2010. Revenue in 2011 was $15.1 billion, up from $14.4 billion the previous year.

American Electric Power, based in Columbus, Ohio, is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 megawatts of capacity.

___

Online:

http://www.aep.com/

[Associated Press; By DOUG WHITEMAN]

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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