PPL 2Q profit, down 45%, misses

ALLENTOWN, Pa. - Energy and utility holding company PPL Corp. reported second-quarter earnings below Wall Street expectations.

The company reported a profit of $190 million, or 50 cents per share, down 45 percent from $345 million, or 88 cents per share, during the second quarter of 2007. The 2007 quarter included income of $101 million from discontinued operations.

Analysts surveyed by Thomson Financial, on average, had expected a profit of 55 cents per share.

Revenue in the quarter dropped to $1.02 billion from $1.57 billion.

PPL said earnings in the 2008 quarter were affected by divestitures in Latin America electricity delivery businesses, rising fuel costs and the loss of synfuel-related earnings, partially offset by improved margins from energy marketing and trading.

"As we stated last quarter, we expect stronger second-half margins in our supply business segment, compared with first-half margins," James H. Miller, PPL's chairman, president and chief executive, said in a statement.

The company lowered its guidance for 2008, citing higher fuel costs and lower expected results from marketing and trading operations.

The company reduced its full-year forecast for earnings from ongoing operations to a range of $2.25 to $2.35 per share, from a prior forecast of $2.35 to $2.45 per share.

Analysts surveyed by Thomson Financial, on average, expect a profit of $2.42 per share.