High amortization costs tug on Northeast Utilities 1Q profit

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May 1, 2008

SPRINGFIELD, Mass.—Northeast Utilities, a New England electricity and natural gas supplier, said Thursday its first-quarter profit dropped 22 percent as amortization costs spiked.

For the period ended March 31, Northeast posted profit of $58.4 million, or 38 cents per share, compared with profit of $75.1 million, or 49 cents per share, in the year-ago period.

Excluding a payment to Consolidated Edison Inc. to settle 2001 litigation, first-quarter profit was $88.2 million, or 57 cents per share.

The company said fuel costs dropped to $823.3 million from $1.07 billion in the first quarter of 2007. Amortization costs grew more than fourfold to $28.9 million from $6.2 million.

Revenue for the period fell 11 percent to $1.52 billion from $1.70 billion.

Analysts polled by Thomson Financial expected, on average, earnings of 54 cents per share. Analysts typically exclude one-time charges.

Shares rose 73 cents, or 2.8 percent, to close at $27.05.

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AP Business Writer Ernest Scheyder