Reliant Says Earnings Fell in 3rd Quarter
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Reliant Resources Inc. said third-quarter earnings fell from weak wholesale power profit and the cost of completing its spinoff from parent company CenterPoint Energy Inc.
Reliant posted earnings of $58 million, or 20 cents a share, down from $214 million, or 71 cents, a year ago. This year’s period included $153 million in charges related to the spinoff and Texas’ transition to deregulated retail electricity sales.
The company also said a review of its trading business uncovered four related natural gas swap deals that should not have been recorded.
The deals cut income by about $13 million in 2000 and increased it by the same amount in 2001, it said.
The internal review was sparked by several government investigations.
The Houston-based firm also dropped its 2002 full-year earnings estimates to a range of $1.45 to $1.55 a share. The earlier forecast had been $1.80 to $2.00 a share.
Shares dropped 8 cents to $1.85 on the NYSE.
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