COLUMBUS, Ohio (AP) -- Utility company American Electric Power said Wednesday its net income sank 11 percent in the third quarter, weighed down by impairment charges from its operations in Texas and Kentucky.
During the quarter AEP took a $111 million charge related to construction of a plant in Texas and a charge of $33 million for work on a project in Kentucky. AEP said the charges totaled $100 million after taxes, or 21 cents per share.
Excluding those charges the company said it earned $1.10 per share in the third quarter. That was more than analysts expected, and AEP offered a more optimistic forecast for the full year.
Its shares gained $1.55 or 3.4 percent, to $46.79 in morning trading.
American Electric Power Co. said its net income declined to $433 million, or 89 cents per share, for the three months ended Sept. 30. That was down from $487 million, or $1 per share, in the 2012 third quarter. Its revenue held steady at $4.2 billion.
Analysts, on average, had forecast net income of $1.08 per share and $4.54 billion in revenue, according to FactSet.
The company is now projecting net income of $3.15 to $3.25 per share in 2013, compared with its previous estimate of $3.05 to $3.25 per share.
Analysts were expecting $3.14 per share on average.