Nicor 1Q profit slips on higher costs and fuel prices
NAPERVILLE, Ill.—Nicor Inc. said Thursday its first-quarter earnings fell 12 percent, as its gas distribution business was hampered by higher costs and its shipping business was weighed down by high fuel prices and economic weakness.
The company earned $41.4 million, or 91 cents per share, compared with $47.2 million, or $1.04 per share, in the year-ago quarter. The 2007 period included a gain of 11 cents per share related to a previous mercury inspection and repair program.
Revenue rose 20 percent to $1.6 billion, from $1.33 billion in the prior-year period.
Analysts predicted a profit of 73 per share on revenue of $1.38 million, according to a poll by Thomson Financial.
"Our gas distribution business continues to be pressured by higher operating costs, and as a result, we have filed for rate relief with the Illinois Commerce Commission, President and Chief Executive Russ M. Strobel said in a statement. On Tuesday, Nicor asked the commission for an increase in business and residential rates of $140.3 million.
"Our shipping business experienced lower than expected results due to increasing fuel costs and economic and competitive pressures on volumes shipped. Our other energy-related businesses produced solid results for the quarter that were inline with our earlier expectations," Strobel said.
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