Progress Energy profit beats Wall Street estimates

Posted August 7, 2008 9:26 a.m. EDT
Updated August 7, 2008 9:09 p.m. EDT

— Profits at Progress Energy (NYSE: PGN) are soaring with the summer heat.

Progress reported profits of $199 million, or 77 cents per share, for the second quarter of this year. That not only is 21 cents higher than the same quarter in 2007; it also topped Wall Street analysts expectations of 61 cents as reported by Thomson Financial.

The company also reaffirmed its financial guidance for the year of a $3.05 per share profit.

"Overall, our company performed well operationally and financially during the second quarter," said Bill Johnson, chairman, and chief executive officer of Progress, in a statement. "We are continuing to deliver on our strategy to generate solid earnings growth through our two utilities (in North Carolina and Florida).”

However, the slowdown in growth in Florida’s economy, which has been hammered by real estate woes, is affecting Progress, Johnson said.

“To help mitigate the effects of weakness in the general economy and lower-than-forecasted customer growth in Florida, we have successfully taken steps to increase wholesale revenues and effectively manage our costs,” he explained.

Despite challenges in Florida, Johnson remained upbeat.