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TECO takes uneventful quarter as a good sign

By LOUIS HAU
Published April 27, 2005

TAMPA - TECO Energy Inc. achieved a modest milestone Tuesday: it released a boring quarterly earnings report.

After two years of mountainous losses and gut-wrenching writeoffs stemming from its costly investments in unregulated wholesale power, being boring suits the Tampa utility just fine.

For the three months ended March 31, TECO reported net income of $32.7-million, or 16 cents a share, on revenue of $684.7-million. It was an improvement from the same period last year, when net income was $2.5-million, or a penny a share, on revenue of $616-million.

TECO reported earnings from continuing operations of 25 cents a share, up from 17 cents a year earlier and exceeding the Thomson First Call consensus earnings projection of 21 cents.

A strong performance at TECO Coal was a major factor, according to TECO president and chief operating officer John Ramil. A nearly 40 percent surge in coal prices helped TECO Coal post net income of $27.5-million, up 79 percent from $15.4-million a year earlier.

An improved performance at TECO Transport boosted the quarter's numbers, with the transport subsidiary seeing improvement in its river barge, ocean barge and terminal businesses, Ramil said. TECO Transport reported earnings of $4.1-million, up from $1.9-million during the same period last year.

The strong gains in TECO's coal and transport units more than made up for a relatively weak performance at the company's flagship subsidiary, Tampa Electric Co. The regulated electric utility posted net income of $22-million, down from $23.9-million a year earlier because of milder temperatures, which cut into electricity sales, and higher plant depreciation expenses.

TECO chairman and chief executive Sherrill Hudson said more one-time charges against earnings were possible, but emphasized they will be far more modest than what the company has recorded in recent quarters.

Hudson said he was pleased with the company's relatively uneventful first-quarter results.

"What it demonstrates is what a fine, core business we have," Hudson said. "It's wonderful to demonstrate a crisp, clear picture of what this company is going to be."

Hudson may find out today whether TECO shareholders agree with this sentiment during the company's annual shareholders meeting, which is at 10 a.m. at the company's corporate headquarters at 702 N. Franklin St. in Tampa.

Louis Hau can be reached at 813 226-3404 or hau@sptimes.com

[Last modified April 27, 2005, 00:47:14]