Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

DTE Energy reports third quarter 2012 results; increases guidance



      DTE Energy reports third quarter 2012 results; increases guidance

PR Newswire

DETROIT, Oct. 24, 2012

DETROIT, Oct. 24, 2012 /PRNewswire/ -- DTE Energy (NYSE:DTE) today reported
third quarter 2012 earnings of $227 million, or $1.31 per diluted share,
compared with $183 million, or $1.07 per diluted share, in 2011. Reported
earnings increased primarily due to warm weather at Detroit Edison, improved
results at MichCon and growth in reduced emissions fuel at Power & Industrial
projects. Those gains were partially offset by lower earnings at Energy
Trading.

Operating earnings for the third quarter 2012 were $227 million, or $1.31 per
diluted share, compared with 2011 operating earnings of $183 million, or $1.07
per diluted share. Operating earnings exclude non-recurring items and
discontinued operations.

"We are pleased with what we've accomplished so far this year," said Gerard M.
Anderson, DTE Energy chairman, president and CEO. "Financial results are
solid, operational metrics are on target and I'm very happy to report that
recent survey results show improved customer satisfaction."

Recent J. D. Power and Associates studies showed DTE Energy's gas utility
ranked third among 17 Midwestern gas utilities for customer satisfaction, and
the electric utility's customer satisfaction ranking has also increased over
the past year.

"Weather events and storms play a major role in power reliability," Anderson
said. "In a summer that included record-setting heat and intense storms, the
extra efforts of our employees to deliver quality customer service are being
recognized and appreciated."

Anderson also commented on Proposal 3 (often referred to as "25 x 25"), a
ballot initiative designed to amend Michigan's constitution and require that
the state's utilities generate 25 percent of their electricity from renewable
sources by 2025. In 2008, the Michigan Legislature passed bipartisan,
comprehensive energy legislation that included a standard for Michigan to
generate 10 percent of its electricity from renewable sources by 2015.

"DTE Energy fully supports the current renewable standard of 10 percent, and
we are on track to meet it," Anderson said. "But we are extremely concerned
about the negative financial impact that Proposal 3 would have on our
customers.  Proponents of this ballot initiative are seeking to dictate
Michigan's energy policy by circumventing the state's legislative process. Our
constitution should not be used to establish detailed industrial policy,
including energy policy."

Anderson suggested that concerned voters visit the Clean Affordable Renewable
Energy (C.A.R.E.) web site for additional information at www.careformich.com.

Reported earnings for the first nine months ended Sept. 30, 2012 were $529
million, or $3.08 per diluted share, versus $561 million, or $3.30 per diluted
share, in 2011. Year-to-date operating earnings were $529 million, or $3.08
per diluted share, compared with $482 million, or $2.83 per diluted share, in
2011.  Reconciliations of reported earnings to operating earnings are at the
end of this news release.

Outlook for 2012

DTE Energy increased its 2012 operating earnings guidance of $3.65 to $3.95
per diluted share to $3.80 to $4.

"Above average temperatures during the summer increased demand and revenues at
our electric utility, more than offsetting the winter's warm weather impact on
our gas utility," said David E. Meador, DTE Energy executive vice president
and chief financial officer. "We are revising guidance to reflect these
weather influences, as well as other economic developments that have impacted
our year-to-date earnings."

Meador also commented on DTE Energy's recent announcement to increase 2012
planned spending with Michigan-based companies from $575 million to $700
million by Dec. 31, 2012. The company spent $558 million with Michigan-based
suppliers through September 2012, compared with $401 million during the same
period a year ago.

"I'm proud of the way our company has embraced the state's Pure Michigan
Business Connect initiative.  DTE Energy's Michigan spend represents more than
6,800 full-time jobs over the last two years as a result of our commitment to
be a force for growth and prosperity in our state," Meador said.

This earnings announcement, as well as a package of slides and supplemental
information, is available at www.dteenergy.com.

DTE Energy plans to conduct a conference call with the investment community
hosted by Meador at 9 a.m. EDT today to discuss third quarter 2012 earnings
results. Investors, the news media and the public may listen to a live
internet broadcast of the call at www.dteenergy.com/investors. The telephone
dial-in numbers are U.S. and Canada toll free: (888) 244-2417 or International
toll: (913) 312-1463. The passcode is 5922498. The internet broadcast will be
archived on the company's web site. An audio replay of the call will be
available from noon today to Nov. 7. To access the replay, dial (888) 203-1112
or (719) 457-0820 and enter passcode 5922498.

DTE Energy (NYSE:DTE) is a Detroit-based diversified energy company involved
in the development and management of energy-related businesses and services
nationwide. Its operating units include Detroit Edison, an electric utility
serving 2.1 million customers in Southeastern Michigan, MichCon, a natural gas
utility serving 1.2 million customers in Michigan and other non-utility,
energy businesses focused on gas storage and pipelines, unconventional gas
production, power and industrial projects, and energy trading. Information
about DTE Energy is available at dteenergy.com, twitter.com/dte_energy and
facebook.com/dteenergy.

Use of Operating Earnings Information - DTE Energy management believes that
operating earnings provide a more meaningful representation of the company's
earnings from ongoing operations and uses operating earnings as the primary
performance measurement for external communications with analysts and
investors. Internally, DTE Energy uses operating earnings to measure
performance against budget and to report to the Board of Directors.

In this release, DTE Energy discusses 2012 operating earnings guidance. It is
likely that certain items that impact the company's 2012 reported results will
be excluded from operating results. Reconciliations to the comparable 2012
reported earnings guidance are not provided because it is not possible to
provide a reliable forecast of specific line items. These items may fluctuate
significantly from period to period and may have a significant impact on
reported earnings.

The information contained herein is as of the date of this release.  DTE
Energy expressly disclaims any current intention to update any forward-looking
statements contained in this release as a result of new information or future
events or developments.  Words such as "anticipate," "believe," "expect,"
"projected" and "goals" signify forward-looking statements.  Forward-looking
statements are not guarantees of future results and conditions but rather are
subject to various assumptions, risks and uncertainties.  This release
contains forward-looking statements about DTE Energy's financial results and
estimates of future prospects, and actual results may differ materially.

Many factors may impact forward-looking statements including, but not limited
to, the following: impact of regulation by the FERC, MPSC, NRC and other
applicable governmental proceedings and regulations, including any associated
impact on rate structures; the amount and timing of cost recovery allowed as a
result of regulatory proceedings, related appeals or new legislation; impact
of electric and gas utility restructuring in Michigan, including legislative
amendments and Customer Choice programs; economic conditions and population
changes in our geographic area resulting in changes in demand, customer
conservation, increased thefts of electricity and gas and high levels of
uncollectible accounts receivable; environmental issues, laws, regulations,
and the increasing costs of remediation and compliance, including actual and
potential new federal and state requirements; health, safety, financial,
environmental and regulatory risks associated with ownership and operation of
nuclear facilities; changes in the cost and availability of coal and other raw
materials, purchased power and natural gas; volatility in the short-term
natural gas storage markets impacting third-party storage revenues; access to
capital markets and the results of other financing efforts which can be
affected by credit agency ratings; instability in capital markets which could
impact availability of short and long-term financing; the timing and extent of
changes in interest rates; the level of borrowings; the potential for losses
on investments, including nuclear decommissioning and benefit plan assets and
the related increases in future expense and contributions; the potential for
increased costs or delays in completion of significant construction projects;
the uncertainties of successful exploration of unconventional gas and oil
resources and challenges in estimating gas and oil reserves with certainty;
changes in and application of federal, state and local tax laws and their
interpretations, including the Internal Revenue Code, regulations, rulings,
court proceedings and audits; the effects of weather and other natural
phenomena on operations and sales to customers, and purchases from suppliers;
unplanned outages; the cost of protecting assets against, or damage due to,
terrorism or cyber attacks; employee relations and the impact of collective
bargaining agreements; the availability, cost, coverage and terms of insurance
and stability of insurance providers; cost reduction efforts and the
maximization of plant and distribution system performance; the effects of
competition; changes in and application of accounting standards and financial
reporting regulations; changes in federal or state laws and their
interpretation with respect to regulation, energy policy and other business
issues; binding arbitration, litigation and related appeals; and the risks
discussed in our public filings with the Securities and Exchange Commission.
New factors emerge from time to time. We cannot predict what factors may arise
or how such factors may cause our results to differ materially from those
contained in any forward-looking statement. Any forward-looking statements
refer only as of the date on which such statements are made. We undertake no
obligation to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to reflect the
occurrence of unanticipated events. This presentation should also be read in
conjunction with the "Forward-Looking Statements" sections in each of DTE
Energy's and Detroit Edison's 2011 Forms 10-K and 10-Q (which sections are
incorporated herein by reference), and in conjunction with other SEC reports
filed by DTE Energy and Detroit Edison.

 

DTE Energy Company
Consolidated Statements of Operations
(Unaudited)
                                        Three Months Ended  Nine Months Ended
                                        September 30        September 30
(in Millions, Except per Share Amounts) 2012      2011      2012      2011
Operating Revenues                      $ 2,206   $ 2,265   $ 6,480   $ 6,724
Operating Expenses
Fuel, purchased power and gas           761       866       2,347     2,708
Operation and maintenance               692       670       2,126     1,948
Depreciation, depletion and             265       259       747       752
amortization
Taxes other than income                 80        79        254       239
Asset (gains) and losses, reserves and  (2)       (8)       (10)      —
impairments, net
                                        1,796     1,866     5,464     5,647
Operating Income                        410       399       1,016     1,077
Other (Income) and Deductions
Interest expense                        112       120       334       370
Interest income                         (2)       (3)       (7)       (8)
Other income                            (47)      (20)      (125)     (59)
Other expenses                          9         16        28        31
                                        72        113       230       334
Income Before Income Taxes              338       286       786       743
Income Tax Expense                      108       101       251       180
Net Income                              230       185       535       563
Less: Net Income Attributable to        3         2         6         2
Noncontrolling Interests
Net Income Attributable to DTE Energy   $ 227     $ 183     $ 529     $ 561
Company
Basic Earnings per Common Share
Net Income Attributable to DTE Energy   $ 1.32    $ 1.08    $ 3.09    $ 3.31
Company
Diluted Earnings per Common Share
Net Income Attributable to DTE Energy   $ 1.31    $ 1.07    $ 3.08    $ 3.30
Company
Weighted Average Common Shares
Outstanding
Basic                                   172       169       171       169
Diluted                                 172       170       171       170
Dividends Declared per Common Share     $ 0.62    $ 0.59    $ 1.80    $ 1.74

 

DTE Energy Company
Segment Net Income (Unaudited)
               Three Months Ended September 30
               2012                              2011
(in Millions)  Reported  Adjustments  Operating  Reported  Adjustments  Operating
               Earnings               Earnings   Earnings               Earnings
Electric       $  194    $   —        $  194     $  157    $   —        $  157
Utility
Gas Utility    4         —            4          (11)      —            (11)
Non-utility
Operations
Gas Storage    14        —            14         13        —            13
and Pipelines
Unconventional —         —            —          (2)       —            (2)
Gas Production
Power and
Industrial     22        —            22         12        —            12
Projects
Energy Trading 1         —            1          22        —            22
Total
Non-utility    37        —            37         45        —            45
operations
Corporate and  (8)       —            (8)        (8)       —            (8)
Other
Net Income
Attributable   $  227    $   —        $  227     $  183    $   —        $  183
to DTE Energy
Company

 

DTE Energy Company
Segment Diluted Earnings Per Share (Unaudited)
               Three Months Ended September 30
               2012                              2011
               Reported  Adjustments  Operating  Reported  Adjustments  Operating
               Earnings               Earnings   Earnings               Earnings
Electric       $  1.13   $   —        $  1.13    $  0.92   $   —        $  0.92
Utility
Gas Utility    0.02      —            0.02       (0.06)    —            (0.06)
Non-utility
Operations
Gas Storage    0.08      —            0.08       0.08      —            0.08
and Pipelines
Unconventional —         —            —          (0.01)    —            (0.01)
Gas Production
Power and
Industrial     0.13      —            0.13       0.07      —            0.07
Projects
Energy Trading 0.01      —            0.01       0.13      —            0.13
Total
Non-utility    0.22      —            0.22       0.27      —            0.27
operations
Corporate and  (0.06)    —            (0.06)     (0.06)    —            (0.06)
Other
Net Income
Attributable   $  1.31   $   —        $  1.31    $  1.07   $   —        $  1.07
to DTE Energy
Company

 

DTE Energy Company
Segment Net Income (Unaudited)
               Nine Months Ended September 30
               2012                              2011
(in Millions)  Reported  Adjustments  Operating  Reported  Adjustments  Operating
               Earnings               Earnings   Earnings               Earnings
Electric       $  417    $   —        $  417     $  345    $  9      A  $  354
Utility
Gas Utility    60        —            60         69        —            69
Non-utility
Operations
Gas Storage    48        —            48         42        —            42
and Pipelines
Unconventional (3)       —            (3)        (5)       —            (5)
Gas Production
Power and
Industrial     40        —            40         27        —            27
Projects
Energy Trading 3         —            3          36        —            36
Total
Non-utility    88        —            88         100       —            100
operations
Corporate and  (36)      —            (36)       47        (88)      B  (41)
Other
Net Income
Attributable   $  529    $   —        $  529     $  561    $  (79)      $  482
to DTE Energy
Company
Adjustments key
A) Fermi asset
retirement
obligation
B) Income tax adjustment due to enactment of Michigan Corporate Income Tax in May
2011

 

DTE Energy Company
Segment Diluted Earnings Per Share (Unaudited)
               Nine Months Ended September 30
               2012                              2011
               Reported  Adjustments  Operating  Reported  Adjustments  Operating
               Earnings               Earnings   Earnings               Earnings
Electric       $  2.43   $   —        $  2.43    $  2.03   $ 0.05    A  $  2.08
Utility
Gas Utility    0.35      —            0.35       0.41      —            0.41
Non-utility
Operations
Gas Storage    0.28      —            0.28       0.25      —            0.25
and Pipelines
Unconventional (0.02)    —            (0.02)     (0.03)    —            (0.03)
Gas Production
Power and
Industrial     0.23      —            0.23       0.16      —            0.16
Projects
Energy Trading 0.02      —            0.02       0.21      —            0.21
Total
Non-utility    0.51      —            0.51       0.59      —            0.59
operations
Corporate and  (0.21)    —            (0.21)     0.27      (0.52)    B  (0.25)
Other
Net Income
Attributable   $  3.08   $   —        $  3.08    $  3.30   $ (0.47)     $  2.83
to DTE Energy
Company
Adjustments key
A) Fermi asset
retirement
obligation
B) Income tax adjustment due to enactment of Michigan Corporate Income
Tax in May 2011

 

SOURCE DTE Energy

Website: http://www.dteenergy.com
Contact: Media: Scott Simons, +1-313-235-8808; Len Singer, +1-313-235-8809;
Analysts: Mark Rolling, +1-313-235-7663; Benny Riggi, +1-313-235-3208
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement