One-Time Gains Boost CMS Energy Profits

JACKSON -- The Jackson utility holding company CMS Energy Thursday reported second quarter net income of $100 million or 38 cents a share, up from $80 million or 32 cents a share in the second quarter of 2010. Revenue was $1.36 billion, up 1.5 percent from $1.34 billion a year earlier.

The results for the second quarters of 2011 and 2010 each included a substantial one-time gain -- $32 million (non-cash) and $15 million, respectively -- related to the company's non-utility operations.

The company's second quarter adjusted net income, which excludes the effects of such one-time items, legacy issues associated with previously sold assets and other items, was $68 million, or 26 cents a share, compared to $65 million, 26 cents a share, for the same quarter in 2010.

The second quarter results reflect lower electric sales at the company's Michigan utility, Consumers Energy, because of cooler temperatures compared to the second quarter of 2010. The costs to restore service to customers after a series of unusually severe spring storms also affected the second quarter results. Those costs were offset partially by slightly higher natural gas sales linked to the cooler temperatures.

For the first six months of the year, CMS Energy had reported net income of $235 million, or 90 cents a share, up from $165 million, or 67 cents a share, for the first half of 2010. On adjusted basis, the company had income of $201 million, or 77 cents a share, for the first two quarters of 2011 compared to $158 million or 64 cents a share for the first half of 2010. Revenue was $3.42 billion, up 3.3 percent from $3.31 billion a year earlier.

CMS Energy reaffirmed its guidance for 2011 adjusted earnings of $1.44 per share. That's an increase of about 6 percent from 2010 adjusted earnings and is consistent with the company's long-term plan of 5 percent to 7 percent annual earnings growth.

John Russell, CMS Energy's president and chief executive officer, said the solid results for the second quarter and the first half of the year reflect the strength of the company's overall plan.  The company plans to invest more than $6 billion through 2015 to serve customers and improve the environment.

"Our focus is on delivering value to customers and we're working hard every day to provide our customers with safe, reliable, and affordable energy service," Russell said.  "We're making substantial investments in renewable energy, environmental quality, energy efficiency, and our natural gas infrastructure.  Along with providing value to customers, these investments are creating jobs and boosting the state's economy. We have set aggressive cost control goals to help hold down costs for customers. Our plan calls for base rate increases to be at or below the rate of inflation for the next five years."

Cash flow in the first half of the year was $747 million -- and as of June 30, CMS was sitting on nearly a billion dollars, $994 million, in cash.

CMS Energy (NYSE: CMS) is a Michigan-based company that has an electric and natural gas utility, Consumers Energy, as its primary business and also owns and operates independent power generation businesses.

More at www.cmsenergy.com.