The company’s 2008 fourth-quarter net income was $332 million, or basic and diluted earnings of $1.09 per common share, on revenue of $3.2 billion. In the fourth quarter of 2007, net income was $268 million, or basic earnings of $0.88 ($0.87 diluted) per share of common stock, on revenue of $3.1 billion.
“While we are pleased with our results, we are focused on 2009 and beyond, including the challenges brought on by the economy,” said Anthony J. Alexander, president and chief executive officer of FirstEnergy. “I believe our key is delivering on the fundamentals – safety, generation plant performance, and service reliability – while focusing on the transition to competitive markets, strengthening our liquidity position, enhancing shareholder value and maintaining a secure dividend.”
The company’s power plants produced a record 82.4 million megawatt-hours (MWH) during 2008, including a record 32.2 million MWH at the company’s nuclear generation plants. Other key income drivers for the year and the 2008 fourth quarter included higher revenues related to wholesale generation sales, lower operating and financing costs, and a lower effective income tax rate. These factors offset higher costs related to regulatory expense amortization, fuel and purchased power expenses, and a reduction in the value of decommissioning trust investments as a result of the downturn in financial markets.
Total 2008 electric generation sales decreased 2.5% compared to 2007. Sales to the wholesale market increased 2.2% for the year, while retail sales were down 3.6%. In the 2008 fourth quarter, total electric generation sales decreased 4.5% compared to the prior-year period. Retail generation sales decreased 4.8%, and sales to the wholesale market decreased 3.4%.
Total distribution deliveries decreased 1.9% during the year, and 4% in the quarter, primarily due to lower demand from industrial customers.
