FirstEnergy announces third quarter 2013 results

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Akron, Ohio — FirstEnergy Corp. (NYSE: FE) today announced third quarter 2013 basic and diluted operating earnings of 94 cents per share of common stock. These results exclude the impact of the special items listed below. This compares to basic and diluted operating earnings of $1.11 per share of common stock in the third quarter of 2012. Operating earnings were previously referred to as normalized non-GAAP earnings.

On a GAAP basis, the company reported basic and diluted earnings of 52 cents per share of common stock in the third quarter of 2013 on net income of $218 million and revenue of $4 billion. Third quarter 2012 basic earnings were $1.02 per share ($1.01 diluted) on net income of $425 million, with revenue of $4.1 billion.

The company also announced that it has narrowed its 2013 operating earnings guidance to $2.90 to $3.10 per share. On a GAAP basis, 2013 earnings are expected to be 78 cents to $1.13 per share.

“Our third quarter results were in line with our expectation,” said Anthony J. Alexander, FirstEnergy president and CEO. “Looking forward, we are pursuing opportunities for growth in our regulated businesses and will continue to focus on controlling costs across our organization, and profitable sales at our competitive segment.”

Third quarter 2013 operating earnings benefited from a lower effective income tax rate and lower general taxes compared to the third quarter of 2012. The lower tax rate is principally due to changes in state income tax allocation factors and the reversal of state tax obligations associated with income previously apportioned to certain tax jurisdictions.

Results in the third quarter of 2013 were negatively affected by lower commodity margin, higher operating costs, increased depreciation and interest expense, and lower distribution deliveries.

Total distribution deliveries decreased 2 percent compared to the third quarter of 2012, as cooler summer temperatures drove a 7 percent reduction in sales to residential customers and a slight decrease in commercial deliveries. Industrial deliveries increased 3 percent compared to the third quarter of 2012.

Contract sales at the company’s competitive segment increased 7 percent compared to the third quarter of 2012. Overall commodity margin decreased due to lower unit prices, increased purchased power and fuel costs and higher capacity expense, partially offset by increased capacity revenues.

For the first nine months of 2012, the company reported net income of $250 million, or 60 cents per basic and diluted share of common stock, on revenue of $11.3 billion. Operating earnings were $2.29 per basic share ($2.28 diluted) for the first nine months of 2013. This compares to net income of $919 million, or basic earnings of $2.20 per share ($2.19 diluted), on revenue of $11.8 billion in the first nine months of 2012. Operating earnings were $2.53 per basic share ($2.52 diluted) in the first nine months of 2012.

Consolidated Report
FirstEnergy’s Consolidated Report to the Financial Community — which provides highlights on company developments and financial results for the third quarter and first nine months of 2013 — is posted on the company’s Investor Information website, www.firstenergycorp.com/ir.

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