("Nicor 2Q Profit Down 21% On Shipping Weakness," published at
7:28 a.m. EDT, misstated the type of rate in the second paragraph.
A correct version follows.)
DOW JONES NEWSWIRES
Nicor Inc.'s (GAS) second-quarter earnings fell a
less-than-expected 21% on weakness in the company's shipping
business.
Chairman and Chief Executive Russ Strobel called year-to-date
results "solid, particularly given the challenging economic
environment." He said higher utility rates are beginning to offset
higher costs in its distribution business while shipping operations
"faced continued pressure on volumes due to the economic
slowdown."
Distribution earnings rose in the latest quarter on the hike in
rates while the shipping business had lower profit on reduced
volume and prices.
The natural-gas company, whose operations are centered in
northern Illinois, reported a profit of $22.9 million, or 50 cents
a share, down from $28.9 million, or 64 cents, a year earlier.
Revenue slid 36% to $447.6 million.
Analysts polled by Thomson Reuters most recently were looking
for earnings of 42 cents on revenue of $589 million.
Operating margin rose to 8.8% from 5.8% as gas costs slumped
60%, but earnings fell on an 88% plunge for interest income.
Gas deliveries dropped 2% while shipping volume actually rose
0.4%. The average sales price tumbled 61% on the cost drop.
Shares of Nicor, which affirmed its 2009 earnings forecast,
closed at $37.50 on Thursday and didn't trade premarket. The stock
has rallied 35% from a six-year low in March.
- By Tess Stynes and Kevin Kingsbury, Dow Jones Newswires;
212-416-2481; tess.stynes@dowjones.com