HEI sees net income decline
Advertiser Staff
At Hawaiian Electric Industries, revenue is up, earnings down
Hawaiian Electric Industries reported a 14 percent decline in third-quarter earnings, despite a 16 percent increase in revenue.
THE NUMBERS
Revenue: $569.8 million vs. $491.3 million a year ago
Net income: $32.3 million vs. $37.5 million a year ago
Earnings per share: 40 cents vs. 46 cents a year ago
Fiscal 2006 revenue: $1.55 billion, up 19 percent from FY2005
Fiscal 2006 net income: $91.9 million, up 2 percent from FY2005
REASONS
WHAT THEY ARE SAYING
HEI's kilowatt hour sales were flat quarter-over-quarter. "While the number of customers continued to grow, usage was down due in large part to cooler, less humid weather and customer conservation."
Constance LauHEI's president and chief executive officer
WHAT'S NEXT
HEI said comprehensive assessments are ongoing but major damage from last month's earthquakes was avoided. The results of these assessments may result in increases in other operation and maintenance expenses in the future.
The state Public Utilities Commission is conducting a formal investigation into the causes of power outages in the wake of last month's earthquakes.
Hawaiian Electric Industries' net income declined in the third quarter primarily because of lower returns on investments.
Lower earnings at the company's American Savings Bank subsidiary more than offset a gain in earnings at its utilities.
HEI supplies power to more than 400,000 customers in Hawai'i through its electric utilities and provides banking and other financial services through American Savings Bank.
The company's utility subsidiaries are continuing to assess the impact of last month's earthquakes, which could result in operation and maintenance expenses in the future.
