Planned spending next year will be cut by 47 percent.Earnings from continuing operations, excluding one-time items, will be $2.75 to $3.05 a share, down from an earlier forecast of $3 to $3.40, Columbus, Ohio-based American Electric said in a statement. Proceeds from the planned share sale will be used to reduce debt, the company said in a separate statement.
In addition to the effect of dilution from our planned stock issuance, the ongoing economic downturn is a significant factor in our revised guidance, Chief Executive Officer Michael Morris said in the statement. Retail demand for electricity, primarily from our industrial customers, is down, which has a negative impact on earnings from our regulated utilities.
The recession also is curbing the sale of power on wholesale markets, Morris said.