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TECO Earnings Fall 37% In 3rd Quarter

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By RUSSELL RAY

rray@tampatrib.com

Published: October 31, 2008

TAMPA - Mild weather, a weak housing market and a souring economy contributed to a 37 percent decline in TECO Energy Corp.'s third-quarter earnings, the company said Thursday.

The Tampa-based company earned $58.2 million, or 28 cents a share, in the quarter that ended Sept. 30. That's down from $92.8 million, or 44 cents a share, for the same quarter of 2007.

Net income for Tampa Electric, TECO's largest business, fell 22 percent, to $50.6 million, the result of lower electricity sales and flat customer growth.

Executives attributed the drop in sales to a glut of empty, unsold homes and a cooler-than-normal summer.

"In July, Tampa Electric experienced one of the wettest summer months since it started keeping records 50 years ago," said TECO Chairman and Chief Executive Officer Sherrill Hudson. "Our area didn't experience much of the normal steamy summer weather that drives air conditioning load."

The quarterly results did not include revenue from TECO Transport, which was sold in December, or the tax credits TECO received in 2007 for the production of synthetic fuel.

In addition, earnings from the company's coal-mining business plummeted to $3.7 million from $20.5 million because of higher production costs and lower-than-expected production.

During the first nine months of 2008, TECO Energy has earned $140.4 million, or 67 cents a share, down from $239.3 million, or $1.15 a share.

Shares of TECO closed Thursday at $12.88, down $1.44.

Reporter Russell Ray can be reached at (813) 259-7870.

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