PPL Corp., an electric-power company in Allentown, reported lower earnings today because of costs related to overseas asset sales. But the company reaffirmed its full-year forcast.
Revenues fell slightly to $1.64 billion in the first quarter ended March 31, compared with $1.65 billion in the year-ago period.
Net income was $203 million, or 52 cents a share, down from $280 million, or 73 cents a share, a year ago.
The company said its coal-fired plants operated well during the quarter. Higher income taxes and a weakness in the international delivery business led to a decline in on-going earnings. They were 65 cents a share in the first quarter, compared with 68 cents a share in the prior-year period.
The company says it expects to earn $2.30 to $2.40 a share in on-going operations this year.
"We expect virtually all of this earnings growth in 2007 over 2006 to occur during the second half of the year, driven primarily by the replacement of expiring supply obligations with higher-margin wholesale energy contracts, expanded energy marketing activity and new full-requirements contracts in the mid-Atlantic region, said James H. Miller, PPL chairman and chief executive officer.
PPL shares on the New York Stock Exchange were down 29 cents to $44.56 in midday trading.