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Dominion earnings down for the quarter and year

Dominion reported 2011 earnings on Jan. 27 of $1.41 billion, or $2.45 per share, down from $2.81 billion, or $4.76 per share, for 2010.

The company emphasized as "more meaningful" its operating earnings — earnings adjusted for certain items.

Operating earnings for the fourth quarter 2011 came in at $334 million, or $0.58 per share, down from $366 million, or $0.63 per share, in 2010.

For the full year, operating earnings came to $1.75 billion, or $3.05 per share, compared with $1.97 billion, or $3.34 per share, for 2010.

The company attributed the decreases for the quarter and year primarily to lower merchant generation margins and lower weather-related sales in its regulated electric service territory but noted that operating earnings per share fell within guidance in spite of a sluggish economy, weak commodity prices and mild weather.

The year was one of significant accomplishments, according to Chairman, President and Chief Executive Officer Thomas F. Farrell II, noting that the company completed and made progress on a number of capital projects.

Dominion expects first-quarter 2012 operating earnings in the range of $0.85 to $1.00 per share, compared with first-quarter 2011 operating earnings of $0.93 per share, and laid out full-year guidance at $3.10 to $3.35 per share.

Positive factors for the quarter include anticipated higher rate adjustment clause earnings and growth in the electric service territory; negative factors include lower merchant generation margins.