Firstenergy Corporation (FE) has reported a 3.80 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $380 million, or $0.89 a share in the quarter, compared with $395 million, or $0.93 a share for the same period last year. On an adjusted basis, earnings per share were at $0.90 for the quarter compared with $0.98 in the same period last year.
Revenue during the quarter dropped 5 percent to $3,917 million from $4,123 million in the previous year period. Gross margin for the quarter expanded 453 basis points over the previous year period to 63.52 percent. Total expenses were 78.02 percent of quarterly revenues, up from 77.98 percent for the same period last year. That has resulted in a contraction of 4 basis points in operating margin to 21.98 percent.
Operating income for the quarter was $861 million, compared with $908 million in the previous year period.
"Our results for the third quarter exceeded our expectations due to the impact of record summer temperatures on our distribution business, as well as solid operations across each of our business segments," said Charles E. Jones, FirstEnergy president and chief executive officer. "We also continue to make solid progress on our regulated growth strategies that are designed to provide predictable and customer-service oriented growth."
For financial year 2016, Firstenergy Corp projects net loss to be in the range of $555 million to $385 million. The company expects basic loss per share to be in the range of $1.30 to $0.90 and expects adjusted basic earnings per share to be in the range of $2.60 to $2.70.
Operating cash flow improves
Firstenergy Corp has generated cash of $2,580 million from operating activities during the nine month period, up 11.35 percent or $263 million, when compared with the last year period.
The company has spent $2,476 million cash to meet investing activities during the nine month period as against cash outgo of $2,287 million in the last year period.
Cash flow from financing activities was $316 million for the nine month period as against cash outgo of $29 million in the last year period.
Cash and cash equivalents stood at stood at $551 million as at Sep. 30, 2016.
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