New Michigan Business Tax Boosts DTE Energy Profits

The Detroit-based utility holding company DTE Energy (NYSE: DTE) Thursday reported second quarter 2011 earnings of $202 million, or $1.19 a share, compared with $86 million, or 51 cents a  share, in the second quarter of 2010.

And Michigan's new business tax is a big part of the reason for the increase. Included in the second quarter results for 2011 was a one-time gain of $88 million or 52 cents a share for the "remeasurement of deferred tax assets and liabilities" at DTE's non-utility businesses as a result of the enactment of the Michigan Corporate Income Tax in May.

Operating earnings for the second quarter 2011 were $111 million, or 65 cents a share, compared with second quarter 2010 operating earnings of $66 million, or 39 cents a share. Operating earnings increased primarily due to solid results at energy trading and Detroit Edison, partially offset by lower earnings at power and industrial projects. Operating earnings exclude non-recurring items and discontinued operations.

"I am pleased with our second quarter performance, which keeps us on track toward achieving our 2011 goals," said Gerard M. Anderson, DTE Energy president and CEO. "I'm also proud of the efforts of our employees in improving customer service and improving our operations. I am confident that our ongoing commitment to continuous improvement will enhance our customers' experience with DTE Energy, while providing them with safe, reliable and affordable energy."

Reported earnings for the first six months of 2011 were $378 million, or $2.23 a share, up from $315 million, or $1.88 per diluted share, in 2010. Year-to-date operating earnings were $299 million, or $1.76 per diluted share, compared with $295 million, or $1.76 per diluted share, in 2010.

DTE Energy reiterated its 2011 operating earnings guidance of $3.40 to $3.70 per diluted share.

"Our solid performance in the second quarter positions us to realize our financial and operational goals for 2011," said David E. Meador, DTE Energy executive vice president and chief financial officer. "As we execute our multi-year plan to invest in renewable energy, environmental controls and operational maintenance, we remain committed to being a force for growth and renewed prosperity in the communities we serve. We plan to boost annual Michigan-based purchases of products and services by $250 million by 2015. Approximately 60 percent of our non-fuel purchases will be sourced in Michigan, up from about 44 percent today."

To listen in on a replay of a conference call discussing the results, visit www.dteenergy.com or call (888) 203-1112 in the United States or (719) 457-0820 elsewhere and enter passcode 3849665.

DTE Energy (NYSE:DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include Detroit Edison, an electric utility serving 2.1 million customers in Southeastern Michigan, MichCon, a natural gas utility serving 1.2 million customers in Michigan and other non-utility, energy businesses focused on gas storage and pipelines, unconventional gas production, power and industrial projects, and energy trading.

More at www.dteenergy.com.