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Duke Energy Corp. Reports Operating Results (10-Q)

November 05, 2010 | About:
10qk

10qk

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Duke Energy Corp. (DUK) filed Quarterly Report for the period ended 2010-09-30.

Duke Energy Corp. has a market cap of $24.45 billion; its shares were traded at around $18.53 with a P/E ratio of 13.4 and P/S ratio of 1.8. The dividend yield of Duke Energy Corp. stocks is 5.2%.DUK is in the portfolios of Brian Rogers of T Rowe Price Equity Income Fund, James Barrow of Barrow, Hanley, Mewhinney & Strauss, Mario Gabelli of GAMCO Investors, Prem Watsa of Fairfax Financial Holdings, Inc., Steven Cohen of SAC Capital Advisors, Pioneer Investments, Jeremy Grantham of GMO LLC, Louis Moore Bacon of Moore Capital Management, LP, Bruce Kovner of Caxton Associates, John Buckingham of Al Frank Asset Management, Inc., George Soros of Soros Fund Management LLC, Dodge & Cox.

Highlight of Business Operations:

Net income attributable to Duke Energy was $670 million for the three months ended September 30, 2010 as compared to $109 million for the three months ended September 30, 2009. Diluted earnings per share increased from $0.08 per share for the three months ended September 30, 2009 to $0.51 per share for the three months ended September 30, 2010 primarily due to the increase in net income in the third quarter of 2010 as compared to the same period in 2009, primarily as a result of a 2009 impairment charge related to goodwill associated with the non-regulated generation operations in the Midwest along with other factors described further below. Income from continuing operations was $666 million for the three months ended September 30, 2010 as compared to $107 million for the same period in 2009. Total reportable segment EBIT (defined below in Segment Results section of Managements Discussion and Analysis of Financial Condition and Results of Operations) was $1,244 million for the three months ended September 30, 2010 as compared to $582 million for the same period in 2009.

Net income attributable to Duke Energy Corporation was $893 million for the nine months ended September 30, 2010 as compared to $729 million for the same period in 2009. Diluted earnings per share increased from $0.56 per share for the nine months ended September 30, 2009 to $0.68 per share for the nine months ended September 30, 2010 primarily due to the increase in net income in the nine months ended September 30, 2010 as compared to the same period in 2009, as described further below. Net income for both the nine months ended September 30, 2010 and 2009 was impacted by goodwill and other impairment charges of $660 and $413, respectively, primarily related to the non-regulated generation operations in the Midwest. Income from continuing operations was $893 million for the nine months ended September 30, 2010 as compared to $737 million for the same period in 2009. Total reportable segment EBIT (defined below in Segment Results section of Managements Discussion and Analysis of Financial Condition and Results of Operations) was $2,450 million for the nine months ended September 30, 2010 as compared to $1,993 million for the same period in 2009.

Consolidated gains on sales of other assets and other, net, was $2 million and $13 million for the three months ended September 30, 2010 and 2009, respectively. The decrease is attributable primarily to lower net gains on sales of emission allowances in 2010 compared to gains at USFE&G and Commercial Power in 2009.

Consolidated gains on sales of other assets and other, net, was $9 million and $32 million for the nine months ended September 30, 2010 and 2009, respectively. The decrease is attributable primarily to lower net gains on sales of emission allowances in 2010 compared to gains at USFE&G and Commercial Power in 2009.

Consolidated other income and expenses, net for the three months ended September 30, 2010 increased $40 million compared to the same period in 2009. The increase was driven primarily by a higher equity component of allowance for funds used during construction (AFUDC) of $21 million due to additional capital spending for ongoing construction projects and favorable returns on investments.

Consolidated other income and expenses, net for the nine months ended September 30, 2010 increased $137 million compared to the same period in 2009. The increase was driven primarily by a higher equity component of AFUDC of $67 million due to additional capital spending for ongoing construction projects, higher equity earnings of $44 million primarily from International Energys investment in National Methanol Company (NMC), a $33 million charge in the first quarter of 2009 associated with guarantees issued on behalf of the Crescent JV (Crescent) and $18 million of deferred returns; partially offset by lower foreign currency translation gains of $24 million.

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