AES reports 35 percent increase in earnings per share
- November 4, 2011
Arlington-based AES Corp. reported adjusted third-quarter earnings per share rose 35 percent because of contributions from new businesses and a lower effective tax rate.
AES, an international power company, said adjusted earnings per share for the third quarter were 27 cents, up from 20 cents the same period last year.
The company said contributions from new businesses in Bulgaria, Northern Ireland and Chile and volume growth in Latin America offset lower prices at one of its utilities in Brazil and previously disclosed repairs at Estí, one of its hydroelectric power generation facilities in Panama.
“We are executing on our core and growth markets strategy, accelerating our cost savings programs and working to close the acquisition of DP&L,” Andrés Gluski, AES president and CEO, said in a statement, referring to the company’s pending $3.5 billion acquisition of the Ohio parent company of Dayton Power & Light. “With these steps and the completion of more than 1,500 [megawatts] of new construction in 2011, we are confident in our future performance, and we intend to declare a $120 million annual dividend in the third quarter of 2012.”
While adjusted earnings per share rose during the third quarter, diluted earnings per share from continuing operations declined from 5 cents last year to a loss of 15 cents this year because of unrealized foreign current losses.
Victoria Harker, the company’s CFO and president of global business services, said the company expects to realize savings of $40 million to $50 million next year instead of earlier projections of $10 million to $20 million as a result of more focused business development efforts and greater efficiency from a new organizational structure.
Third-quarter revenue rose from $3.99 billion last year to $$4.38 billion this year. Year-to-date revenue increased from $11.78 billion last year to $13.1 billion this year.