Allete Q3 Profit Declines, Misses View; Sees 2013 Earnings At Low End Of Range

(RTTNews) - Allete Inc. (ALE) reported that its third-quarter net income decreased to $25.2 million or $0.63 per share from $29.4 million or $0.78 per share in the year-ago period. On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.73 per share for the quarter. Analysts' estimates typically exclude special items.

However, operating revenue for the quarter rose to $251.0 million from $248.8 million in the year-ago period.

R. Hodnik, Allete Chairman, President and Chief Executive Officer said, "Property tax expense has been higher than expected and we have had a slight delay in our capital spending. We also had lower municipal sales than projected, primarily due to the timing of the Essar Steel Minnesota project. All of these contributed to lower earnings than projected during the third quarter."

Looking ahead to fiscal 2013, Allete now expects earnings in the lower half of its previously stated guidance range of $2.58 to $2.78 per share. Analysts expect the company to report earnings of $2.69 per share for the year.

The revised forecast reflects the company's year-to-date financial results and a later than anticipated start-up of the Essar Steel Minnesota project.

Hodnik added, "Looking ahead to 2014, growth from our environmental and renewable investments will help enable Allete to achieve its long-term average earnings growth objective of five percent annually, using 2010 as the base year. Beyond 2014 we look forward to organic sales growth increases as Essar begins operations and from a potential new Polymet facility."