Cost cutting helps drive Wisconsin Energy’s 4th-quarter profit growth

Wisconsin Energy improves 4Q profit on lower costs

MILWAUKEE — Wisconsin Energy Corp. said Tuesday its cost-cutting efforts were able to offset a decline in revenue to lift fourth-quarter profit.

The Milwaukee-based provider of electricity and natural gas said net income rose to $118.7 million, or $1 per share, compared with $100 million, or 85 cents per share, a year ago. Excluding discontinued operations, the company would have earned 96 cents per share.

Revenue fell to $1.07 billion from $1.20 billion a year ago. The company said a cooler summer caused retail electricity sales to fall 8.1 percent and residential use to decline 3.8 percent in 2009. Electricity consumption by commercial and industrial customers fell 10 percent over the year, due mostly to the economic slowdown, the company said.

However, operating expenses dipped to $924 million from $1.01 billion a year earlier, countering the revenue drop.

Analysts surveyed by Thomson Reuters expected profit of 89 cents per share on higher revenue of $1.31 billion.

For the year, net income rose to $382.4 million, or $3.24 per share, from $359.1 million, or $3.04 per share, a year earlier. The 2009 results include a full year’s earnings from Wisconsin Energy’s newest generating unit at Port Washington.

Shares rose 31 cents to $49.44 in afternoon trading.