American Water Earnings Decline as Demand Drops Due to Weather
American Water (AWK) Works Co., the largest publicly traded water company in the U.S., said profit declined 2 percent in the third quarter as below-normal temperatures lowered customer usage.
Net income was $150.7 million compared with $153.8 million in the year-earlier quarter, the Voorhees, New Jersey-based utility said in a statement. Operating revenue was almost unchanged at $829.2 million as weather caused a drop in demand. Usage rises in hotter, drier weather.
American Water narrowed its guidance for 2013 adjusted earnings per share to $2.17 to $2.22 excluding one-time charges related to a completed tender offer compared with an EPS range of $2.15 to $2.25 in August, Chief Executive Officer Jeff Sterba said yesterday in the statement.
Third-quarter EPS was 84 cents versus an 85-cent consensus from 13 analysts’ estimates compiled by Bloomberg. The company provides drinking water and wastewater services to 14 million people in 30 states and parts of Canada. It has completed the purchase of eight water and four wastewater systems in 2013.
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