The company reported an operating income and diluted earnings per common share of $22.8 million and $0.32, respectively. This compares to operating income and diluted earnings per common share for the third quarter in 2006, $28.5 million and $0.39, respectively.
For the nine months ended September 30, 2007, preliminary net income, operating income and diluted earnings per common share were $79.7 million, $129.3 million and $1.76, respectively. This compares to net income, operating income and diluted earnings per common share for the same period in 2006 of $70 million, $111.5 million and $1.57, respectively.
Earnings for the 2007 nine-month period, compared to 2006, reflect the effects of the aforementioned mercury items and the absence of last year’s charge associated with the Securities and Exchange Commission (SEC) inquiry.
The 2007 earnings for the nine-month period also reflect higher operating results in the company’s gas distribution business (before consideration of the mercury items) and other energy-related ventures, partially offset by lower operating results in the company’s shipping business and lower corporate income (before consideration of the 2006 charge associated with the SEC inquiry). The nine-month period comparisons were also impacted by higher average common shares outstanding in 2007 and the absence of certain income tax benefits recognized in 2006.
Russ Strobel, chairman, president and CEO, said: Overall, our third quarter and year-to-date consolidated results have been satisfactory, especially after consideration of the impact of an increase in bad debt costs at our gas distribution business. As a result, we have affirmed our previous guidance for expected 2007 results.
Looking forward, we expect continued upward pressure on costs in that business given an ongoing challenging economic environment and gas costs which remain high by historical norms. As in the past, management is continuing its focus on managing controllable costs to mitigate the impact of these external factors.
