CH Energy 1Q profit falls on higher energy costs

POUGHKEEPSIE, N.Y.—CH Energy Group Inc., a New York utility and fuel distributor, said Monday its first-quarter profit fell 11 percent as consumer cut back on energy usage amid a high prices and a weakening economy.

For the quarter ended March 31, CH Energy earned $19.3 million, or $1.22 per share, compared with $21.7 million, or $1.37 per share, for the same quarter in 2007.

Total operating revenue rose 19 percent to $409.8 million from $343.4 million in the year-ago period, while fuel supply costs jumped 24 percent to $288.3 million from $231.9 million.

"We experienced a year-over-year quarterly reduction in earnings due in large part to the effect of higher energy supply costs and a weakening economy," Steven V. Lant, the company's chairman, president and chief executive, said in a statement. "Despite this, our core businesses continued to show signs of strength through the first quarter."

Lant added that higher energy supply costs are resulting in higher bills and prompting the company's customers to conserve, resulting in lower sales volumes.

The company said it still expects to post a 2008 profit of $2.30 to $2.50 per share.

CH Energy shares fell 39 cents to $39.26 in morning trading.