CMS Energy income steady
CMS Energy reported net income of $80 million, or 32 cents per share, for the second quarter of 2010 compared to reported net income of $75 million, or 32 cents per share, in the same quarter of 2009.
The company's second quarter adjusted (non-generally accepted accounting principles) net income, which excludes the effects of legacy issues associated with previously sold assets and certain other items, was $65 million, or $0.26 per share. In the second quarter of 2009, the company had adjusted net income of $67 million, or $0.28 per share.
For the first six months of 2010, CMS Energy had reported net income of $165 million, or 67 cents per share, compared to reported net income of $145 million, or 62 cents per share, for the first half of 2009. The 2010 earnings per share reflect the impact of additional assumed shares outstanding to meet potential conversions of convertible securities, as required by accounting rules.
On an adjusted basis, the company had net income of $158 million, or 64 cents per share, for the first half of 2010, compared to adjusted net income of $138 million, or 59 cents per share for the first six months of 2009.
CMS Energy reaffirmed its guidance for 2010 adjusted earnings of about $1.35 per share. Reported earnings could vary because of several factors such as legacy issues associated with previously sold assets. Because of those uncertainties, the company isn't providing reported earnings guidance.
John Russell, the president and CEO of CMS Energy, said the second quarter results reflected strong operational performance at the company's principal subsidiary, Consumers Energy, a Michigan electric and natural gas utility.
"We are maintaining our focus on providing customers with safe, reliable and affordable service, and we continue to tightly manage our costs to help create energy value for customers," Russell said. He also noted the renewable energy contracts are part of the company's continuing implementation of its Balanced Energy Initiative, a comprehensive plan to meet the power needs of the utility's 1.8 million electric customers over the next 20 years.
"Consumers Energy already is Michigan's largest supplier of renewable energy, with 4 percent of the electricity that we supply to customers today coming from renewable sources,” Russell said. “By the end of 2012, including the addition of our Lake Winds Energy Park, we project that Michigan-based renewable sources will provide about 8 percent of the power that our customers need."