Evansville-based Vectren Corp. (NYSE: VVC) is reporting third quarter net income of $61.4 million, compared to $39.3 million during the same quarter a year earlier. The results were boosted by what Chief Executive Officer Carl Chapman calls a strong performance from the utility group, which he expects to continue through the rest of the year.
Earnings for the utility group came in just under $35 million, up from $26.9 million a year ago. Nonutility group earnings nearly doubled to $24.3 million, but Chapman tempered expectations for the group, which in recent quarters, has been part of a challenging environment. "As we discussed during 2015 and thus far in 2016, Infrastructure Services’ transmission operation has experienced 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 awarded to us. However, transmission results were favorably impacted in the quarter by the revenue related to a number of projects, including a larger project where work commenced in the third quarter of 2016," he said. "We remain confident in the long-term outlook as new pipeline projects are still scheduled to get underway in the relatively near term, which should result in a reduction in competition for maintenance work."
The company says its 2016 consolidated earnings guidance remains in the range of $2.45 to $2.55 per share.
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