Progress Energy profit sinks on weak Southeast retail sales

RALEIGH, N.C.—Power company Progress Energy Inc. said Thursday its first-quarter earnings tumbled 24 percent, hurt by milder weather in the southeastern U.S. and lower-than-expected customer growth in Florida.

The company earned $209 million, or 81 cents per share, compared with $275 million, or $1.08 per share, in the year-ago quarter.

Ongoing earnings were $148 million, or 57 cents per share, compared to $149 million, or 59 cents per share, in 2007. Ongoing earnings exclude some one-time gains and losses, including certain tax charges and accounting adjustments, as well as losses from discontinued operations.

Operating revenue was virtually flat at $2.07 billion.

Analysts were expecting a profit of 63 cents per share on revenue of $2.27 million, according to a poll by Thomson Financial. Analysts tend to exclude one-time items from their estimates.

The company said retail sales were dragged down by milder weather in the Southeast and by slower-than-expected customer growth in Florida. Progress Energy said it plans to combat retail weakness this year through expansion of its wholesale business in Florida and with an "aggressive cost management plan."