[May 09, 2008] Progress Energy Earnings Lose Ground Tweet (Tampa Tribune (FL) (KRT) Via Acquire Media NewsEdge) May 9--TAMPA -- Florida's sluggish real estate market contributed to a 24 percent drop in first-quarter earnings at Progress Energy, the company reported Thursday. Net income for the Raleigh, N.C.-based energy company fell from $275 million, or $1.08 a share, in the first quarter of 2007 to $209 million, or 81 cents a share, in the first quarter of 2008. Executives attributed the downturn to lower electricity sales caused by milder weather in the Southeast and lower-than-expected customer growth in Florida, where the company operates St. Petersburg-based Progress Energy Florida. Overall, Progress Energy provides electricity to 3.1 million customers in the Carolinas and Florida, including Pasco, Pinellas and a portion of Hillsborough County. Paul Franzen, energy industry analyst for Edward Jones, said the company's decrease in earnings is "not a reason for long-term investors to get out of the stock." That's because earnings from the company's ongoing operations are still healthy, Franzen said. First-quarter ongoing earnings were $148 million, or 57 cents per share, compared with $149 million, or 59 cents per share, for the same three months last year. The bulk of the decline is tied to the company's discontinued operations, Franzen said, or assets the company recently sold to reduce debt, including the $94 million completion of a deal to sell coal mines and river terminals associated with its synthetic fuels business. "They've lowered the overall risk profile of the company," he said. "And by paying down debt, they've also improved the financial strength of the company." Reporter Russell Ray can be reached at (813) 259-7870 or [email protected]. To see more of the Tampa Tribune or to subscribe to the newspaper, go to http://www.tampatrib.com. Copyright (c) 2008, Tampa Tribune, Fla. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. [ Back To TMCnet.com's Homepage ]