Wisconsin Energy reports fourth quarter and full year results

Special to The Freeman

Feb. 11, 2015

MILWAUKEE – Wisconsin Energy (NYSE: WEC) is reporting a net income of $1221.4 million, or 53 cents per share for the fourth quarter of 2014. This compares to net worth income of $144.3 million, or 63 cents per share for the fourth quarter of 2013.

Costs related to the acquisition of Integrys Energy reduced earnings by 3 cents a share in the most recent quarter. Excluding the effect of this item, adjusted earnings for the fourth quarter of 2014 were 56 cents per share.

Fourth quarter 2014 revenues rose to $1.23 billion, up from $1.18 billion recorded in the corresponding quarter a year ago.  For the full-year 2014, revenues reached $5.00 billion versus $4.52 billion in the previous year.

Net income for the full year 2014 totaled $588.3 million or $2.59 a share -- compared to $577.4 million or $2.51 per share for 2013. 

Costs related to the acquisition of Integrys Energy reduced 2014 earnings by 6 cents per share.  Excluding the effect of this item, adjusted earnings for the year 2014 were $2.65 per share.

Major factors contributing to the year's strong performance include colder winter temperatures that drove record demand for natural gas, effective overall cost controls, as well as lower medical and benefit costs.

Residential use of electricity in 2014 was down by 2.4 percent, which was the result of cool summer weather. 

Consumption of electricity by small commercial and industrial customers dropped by 0.4 percent.  Electricity deliveries to large commercial and industrial customers, excluding the iron ore mines in Michigan's Upper Peninsula, rose by 0.9 percent.

On a weather normal basis, total deliveries of electricity to retail customers, excluding the iron ore mines,  rose by 0.4 percent in 2014.

"We saw strength from our large commercial and industrial customers throughout the year," said Gale Klappa, chairman and chief executive.  "Several sectors of our regional economy, including paper manufacturing, food products, primary metals, and rubber and plastics, showed steady improvement. And Wisconsin's unemployment rate dropped to 5.2 percent at the end of 2014, [which is] well below the national average. In addition, we saw an uptick in customer growth during 2014, particularly in our natural gas distribution business.”

At the end of December, the company was serving 5,300 more electric customers and 9,100 more natural gas customers than the previous year.

"In summary, 2014 was another year of achievement for Wisconsin Energy," said Klappa. “We were named the most reliable utility in the Midwest for the fourth year in a row, extending our strong track record of network reliability and customer satisfaction.”

Wisconsin Energy posted a package of detailed financial information on its fourth quarter and year-end performance on its website.

For more information about Wisconsin Energy, visit www.wisconsinenergy.com.