Third-quarter earnings for CH Energy Group, parent company of Central Hudson Gas & Electric, per share of stock overall fell 33.3 percent to 18 cents from 27 cents from the same period a year ago, CH Energy Group reported Oct. 27.
Net income fell by the same percentage to $2.9 million. Operating revenues rose 15.6 percent to $300.8 million, mostly because of nonutility subsidiaries, but various costs rose even more, leading to the shortfall in the bottom line.
With an economy believed to be in recession and a slowdown in the growth of the HudsonValleyCentral Hudson sees signs of trouble in its revenue stream. market,
“It must be noted that higher reserves for uncollectible accounts have reduced this quarter’s earnings by 4 cents a share and by 13 cents per share so far this year,” Steven Lant, chairman, president and CEO, said in a prepared statement.
The company, which is based in Poughkeepsie, said year-to-date earnings stand at $1.51 per share, as compared to $1.98 posted during the first nine months of 2007.
The results reflect customer efforts to conserve energy, as well as a weakening economy and customer difficulty in paying bills, said Lant.
The company continues to project its consolidated 2008 annual earnings will total between $2.02 and $2.27 per share.
But the future is murky at best. “It’s hard to predict what kind of conditions we will be facing next year given how tumultuous this year has been,” Lant said during a conference call discussing the third quarter.
