AEP earnings down 36% in first quarter

<br>COLUMBUS, Ohio (AP) _ American Electric Power said Thursday that earnings dropped 36 percent in the first quarter compared with a year ago when the company had a large accounting gain. <br><br>AEP

Thursday, April 29th 2004, 12:00 am

By: News On 6

COLUMBUS, Ohio (AP) _ American Electric Power said Thursday that earnings dropped 36 percent in the first quarter compared with a year ago when the company had a large accounting gain.

AEP said it made $278 million, or 70 cents per share, for the quarter that ended March 31 compared with $440 million, or $1.24 per share, a year ago. Sales declined to $3.3 billion from $3.8 billion a year ago.

The accounting adjustment a year ago improved earnings for last year's quarter by $242 million, or 68 cents a share.

Besides Ohio, AEP has about 5 million customers in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.

Excluding charges, the utility earned $285 million for the quarter, up 12 percent from $255 million a year ago. Earnings per share for both quarters totaled 72 cents because the company has 39 million more shares than a year ago.

Analysts surveyed by Thomson First Call expected earnings of 61 cents per share.

AEP reported increases in wholesale sales and in its gross margin from regulated integrated utilities and its Ohio companies despite mild weather conditions this year compared with a year ago. The company also said it lost money on investments in the quarter.