Aqua America 1Q profit falls on economy woes, higher costs

BRYN MAWR, Pa.—Water and sewage utility Aqua America Inc. said Tuesday its first-quarter profit fell as costs rose and a slowing economy hurt customer growth and led existing customers to cut back.

The company earned $14.3 million, or 11 cents per share, compared with $16.9 million, or 13 cents per share, during the same period a year earlier.

Revenue increased to $139.3 million from $137.3 million previously.

Analysts surveyed by Thomson Financial predicted the company would earn 15 cents per share, on average, on revenue of $146 million.

Aqua America said operating and maintenance expenses rose 6.6 percent during the quarter.

The company said revenue was helped by infrastructure surcharges in Pennsylvania and Illinois, rate increases in North Carolina and Ohio, and acquisitions in the past year.

But those gains were partially offset by slowing customer use, a soft housing market that led to fewer new connections, and the loss of 11,000 customers who were transferred to the city of Fort Wayne, Ind., in February.

Shares fell 96 cents, or 5 percent, to $18.23 in morning trading.

• Searched
• E-Mailed