FirstEnergy reports lower Q2 earnings - WOWK 13 Charleston, Huntington WV News, Weather, Sports

FirstEnergy reports lower Q2 earnings

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FirstEnergy, the electric utility providing power to most of the northern half of West Virginia, on Tuesday reported second-quarter earnings of $188 million on revenue of $3.9 billion. Last year, the company reported $193 million earnings on $4.1 billion in revenue.

For the first six months of 2012, net income was $494 million on revenue of $7.9 billion, an increase from net income of $240 million on revenue of $7.6 billion in the first half of 2011.

"Despite the continued challenges of the sluggish economy and the impact of mild weather on our first half results, we remain confident in our long-term strategies, and we will continue positioning our competitive business for the eventual economic recovery," said Anthony J. Alexander, president and CEO.

Second quarter results benefited from lower operating costs, lower gross receipts taxes and reduced interest expense, the company said in its earnings release.  Results were negatively affected by lower sales margins from competitive operations, a reduction in investment income and increased depreciation expense.

Total distribution deliveries increased slightly in the quarter, but the earnings impact was essentially flat.  Industrial sales increased 3 percent, commercial deliveries rose modestly, and residential deliveries decreased slightly, the company said.