Akron-based FirstEnergy Corp.’s profit fell nearly 36 percent in the first quarter, the company said Tuesday morning.
The company reported net income of $196 million for the first quarter of 2013. That’s 35.9 percent lower than $306 million reported a year ago.
The electric utility and parent company of Ohio Edison said its results were negatively affected by lower commodity margins, higher depreciation expenses and reduced revenues from the regulated transmission business. It also said its results benefited from higher distribution deliveries, a lower income tax rate, reduced operating costs and lower general taxes.
In a statement, company President and Chief Executive Officer Anthony J. Alexander said, “Our first-quarter results were solidly in line with our expectations. We continued to achieve growth in our competitive business as a result of the successful implementation of our retail strategy, and we executed several key elements of our financial plan, which is designed to improve the balance sheet, enhance liquidity, and maintain investment grade credit metrics. We remain focused on positioning our company for long-term growth, while addressing the impact of current market conditions and regulatory challenges.”
The company said that cooler weather in the first quarter of this year compared with the same period last year resulted in a 3 percent increase in total distribution deliveries. Residential sales increased 6 percent, while commercial and industrial deliveries increased slightly.
The company said its subsidiary FirstEnergy Solutions continued to successfully expand its business and customer base using what it called a multichannel sales strategy. The gains were offset by lower capacity prices, which drove an overall reduction in commodity margin, the company said.
FirstEnergy shares closed down 8 cents to end the day at $44.10.