Minnesota Power’s parent firm said annual earnings will be at the low end of expectations.
Allete Inc., the parent of Minnesota Power, earned 63 cents a share in the third quarter, missing Wall Street’s expectations by 10 cents.
The company said Friday it earned $25.2 million, down 14 percent, on revenue of $251 million, up about 1 percent. Allete’s operations include the regulated businesses Minnesota Power, Superior Water, Light and Power and an investment in the American Transmission Co.
Investment analysts had been expecting earnings per share of 73 cents on revenue of $248.8 million.
Allete said its earnings per share were diluted by 4 cents because it issued common shares to fund investments in renewable energy, environmental upgrades and energy transmission.
“While we initially expected lower quarterly earnings compared to last year’s third quarter, we were further impacted by several individually small items,” said CEO Alan Hodnik. As a result, “we expect our full-year 2013 earnings to be in the lower half of our previously stated guidance range of $2.58 to $2.78 per share.”
A consensus of Wall Street estimates had been in the middle of that range at $2.69 per share.
Allete shares dropped 50 cents, or 1 percent, to $50.01 per share.