American Water Works Profit Falls on Costs From Hurricane Sandy

American Water Works Co. (AWK), the largest publicly traded U.S. water company, said fourth-quarter income fell 14 percent because of increased costs and reduced sales after Hurricane Sandy.

Net income fell to about $55 million, or 30 cents a share, from $65 million, or 34 cents a share, a year earlier, the Voorhees, New Jersey-based company said in a statement today. That was three cents less than the average of eight estimates compiled by Bloomberg.

Income for all of 2012 increased 16 percent to $358.1 million, or $2.11 a share, as “sales were increased by the abnormally hot, dry weather in the summer,” Chief Executive Officer Jeff Sterba said in the statement.

American Water Works reiterated that it expects 2013 earnings per share to be in the range of $2.15 to $2.25.

The company said last month that earnings in the fourth quarter would be affected by Hurricane Sandy.

To contact the reporter on this story: Justin Doom in New York at jdoom1@bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net; Randall Hackley at rhackley@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.