American Electric Power Q2 earnings $390 million
This compares with $0.69 per share or $338 million in second-quarter 2013, an increase of 16 percent in earnings per share.
Operating earnings (GAAP earnings excluding special items) for second-quarter 2014 were the same as GAAP earnings of $390 million or $0.80 per share, compared with second-quarter 2013 operating earnings of $0.73 per share or $357 million, a 10 percent earnings-per-share increase.
"We continue to see the positive effects of executing our regulated earnings growth strategy," said Nicholas K. Akins, AEP chairman, president and chief executive officer.
"Our focus on transmission also is boosting earnings. AEP Transmission Holding Co., including equity earnings from joint ventures, contributed 10 cents per share to earnings in second-quarter 2014, 6 cents higher than the earnings contribution in second-quarter 2013. Between June 2013 and June 2014, we grew Transmission Holding Co.'s net plant assets by 92 percent, to nearly $2.1 billion.
"Economic improvement in the states where we operate is encouraging, particularly in areas with shale gas development. Excluding the 2013 closure of our largest industrial customer, overall industrial sales increased 4.5 percent for the quarter, and in counties with significant shale gas development, our industrial sales increased by 39 percent.
"Industrial sales increased in nine of our top 10 industrial sectors in the first half of 2014. Commercial sales also increased for the fourth consecutive quarter. While residential usage declined slightly this quarter, we expect it to be slightly higher year over year.
"We've maintained our focus on cost controls and process improvements. Although we are advancing spending into 2014 from future years, we remain well-positioned within our 2014 earnings guidance range. Based on our positive earnings performance and balance sheet strength, we are increasing capital investment in our transmission business by another $100 million.
"The additional $300 million that we've allocated to our transmission business in 2014 brings our total transmission capital investment to approximately $1.9 billion, which will support future earnings growth," Akins said.
Management reaffirmed its 2014 operating earnings guidance range of $3.35 to $3.55 per share. ■