Hawaiian Electric earnings fall 35.5%
Advertiser Staff
Earnings at Hawaiian Electric Industries Inc. declined by 35.5 percent during the second quarter 2007 to $17.5 million due to rising costs at the company's utility and higher interest rates, which cut into American Savings Bank's profit.
THE NUMBERS
Revenue: $600.8 million, down 0.7 percent from year ago.
Net income: $17.5 million, down 35.5 percent from year ago.
Earnings per share: 89 cents, down 46.4 percent from year ago.
Year-to-date revenues: $1.2 billion, down 2.1 percent from a year ago.
Year-to-date income: $24.3 million, down 59.6 percent from a year ago.
Year-to-date earnings per share: 30 cents, down 58.2 percent from a year ago.
REASONS
WHAT THEY ARE SAYING
"Our utility continued to experience rising costs of operating its systems reliably, while at the bank, the impact of persistently high short-term interest rates on costing liabilities continued to compress net interest margin ... "
Constance LauPresident, CEO
WHAT'S NEXT
In May, the state Public Utilities Commission approved HECO's request to build a 110-megawatt biofueled plant on O'ahu. The plant should increase generating capacity and improve reliability.
Analysts polled by Bloomberg News Service expect the company to earn 41.5 cents per share in third quarter 2007.
Shares are expected to trade between $24 and $27, analysts said.
