Vectren Details 2Q Earnings

Posted: Updated:

Evansville-based Vectren Corp. (NYSE: VVC) says competition for pipeline maintenance work helped drive profits lower in the second quarter. The utility is reporting net income of $32.3 million, compared to $35.8 million during the same period a year earlier.

Chief Executive Officer Carl Chapman says, despite continuing challenges to the transmission operations, the Energy Services business did well and Infrastructure Services unit's distribution operations remain "on pace for a solid year."

"Our second quarter results for the utility group were strong and we expect that performance to continue for the balance of the year," he said. "As we discussed during 2015 and so far in 2016, Infrastructure Services' transmission operation continues to experience increased competition in its primary area of transmission pipeline maintenance work. The increased competition has resulted in lower margins for transmission pipeline maintenance work and fewer jobs being won. As we expected, the second quarter was a challenge for that part of our business, and we expect those challenges to continue throughout 2016. However, we remain confident in the long-term outlook as new pipeline projects are still scheduled to get underway in late 2016 and beyond, which should result in a reduction in competition for this maintenance work."

A bright spot for the future, the company says, is construction activity. Officials expect it to remain strong for the long-term as utilities, municipalities and pipeline operators fix or replace aging pipelines and infrastructure.

You can connect to more about Vectren's second quarter performance by clicking here.

  • Perspectives

    • Overseas Outsourcing Can Create a World of Problems

      The internet broke down geographic barriers for businesses, making it possible to find lower-cost suppliers around the world. But if companies lack the knowledge and skills to manage those suppliers properly, they may end up spending far more than expected. We’ve worked with companies all over the globe to help our clients meet their advertising and marketing objectives while protecting their budgets. While most of those working relationships have been positive, we’ve had...


  • Most Popular Stories

    • ‘Potential’ Fueling Downtown Makeover in Fort Wayne

      As Fort Wayne prepares to christen its latest big downtown project, Mayor Tom Henry says there are no signs of transformational development slowing down in the state’s second largest city. The Landing, a $34 million downtown redevelopment project, is expected to officially open soon, one of an estimated 14 projects that Henry says can help Fort Wayne become a destination city. Since the opening of Parkview Field more than a decade ago, Henry says momentum has...

    • New study reveals best place in Indiana for young families

      And the Best Place for Young Families Goes To...

      What do you look for in a community when deciding where to start a family and raise your children? There can be several factors to weigh in making a sound decision. Housing affordability. Unemployment rates. Quality of education. Mortage website has released the results of a study pointing to the best places for young families in Indiana.

    • (photo courtesy of The Times of Northwest Indiana)

      Whiting Makes Way for New Building with Familiar Name

      What was an old eye-sore in Whiting will soon be replaced with a new mixed-use five-story building, attracting new business and residents.  The city of Whiting acquired the old Illiana hotel through the Lake County property tax sale process in 2013. 

    • (image courtesy of WPTA TV)

      Indiana Plants Impacted by UAW Strike

      The United Auto Workers union, which totals approximately 49,000 workers at 33 General Motors Co. (NYSE: GM) plants nationwide, went on strike at midnight. The strike affects workers at GM plants in Fort Wayne, Bedford, Marion and Kokomo. The Fort Wayne plant, which assembles full-size pickup trucks, employs about 4,500 UAW workers. Our partners at WPTA-TV in Fort Wayne report several hundred were seen on the picket line throughout the day. In all, about 7,000 UAW...

    • Money magazine judges Fishers as 3rd best place to live in the U.S.

      Fishers Makes Top 10 List of 'Best Places to Live'

      Three communities in Indiana made the top 100 list of best places to live in the country, but only one made the top 10. Fishers was judged by Money magazine as the third best place to live in the United States, behind Clarksville, Tennessee and Round Rock, Texas.