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TECO Quarter's Net Fell 87%, 61% For Year

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By RICHARD MULLINS

rmullins@tampatrib.com

Published: February 7, 2009

TAMPA - A combination of mild weather and the lagging Florida economy pummeled earnings at TECO Energy Inc.

On Friday, the Tampa-based energy conglomerate said its fourth-quarter profit tumbled 87 percent from the year-ago period, and was only partly boosted by a one-time gain from selling a coal transport business.

Earnings slid to $22 million, or 10 cents per share, compared with $173.9 million, or 83 cents a share, in the same quarter a year ago. The results in 2007 included a $149.4 million gain related to the sale of TECO Transport.

By midyear, the company hopes for "rate relief" from higher energy prices at Tampa Electric and Peoples Gas. Meantime, the company's results suffered.

"The weak Florida and national economies significantly slowed Florida's previously consistent growth, and our results reflect the slowdown," Chairman and Chief Executive Officer Sherrill Hudson said in a statement. "In addition to the economy, milder-than-normal weather for much of the year in Florida reduced results at Tampa Electric and higher production costs reduced results at the coal company."
TECO Energy employs 4,488 people, including 2,803 in the Tampa Bay area.

Excluding synthetic fuel sales, profit dropped to $42.3 million from $47.7 million.

Revenue for the period ended Dec. 31 declined 10 percent to $770.3 million from $858.3 million. Analysts surveyed by Thomson Reuters expected profit of 17 cents per share on revenue of $868.3 million. Analysts' estimates typically exclude one-time items.
TECO Energy reported weakness in its coal and TECO Guatemala divisions during the quarter, with Guatemala's results hurt by the repatriation of $71.7 million in cash and investments to the parent company.

Full-year net income in 2008 slumped 61 percent to $162.4 million, or 77 cents per share, compared with $413.2 million, or $1.97 a share, in 2007. Excluding synthetic fuel, earnings slipped to $183.3 million from $223.7 million. Annual revenue fell 5 percent to $3.38 billion from $3.54 billion.

The company said it does not expect meaningful improvement in the Florida economy until the second half of this year or in early 2010.

TECO stock rose 23 cents per share Thursday to close at $12.50 a share.

Information from The Associated Press was used in this report. Reporter Richard Mullins can be reached at (813) 259-7919.

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