FirstEnergy Raises 2012 Non-GAAP EPS Guidance to $3.63-3.65 vs $3.30-3.50 Prior
FirstEnergy Corp., (NYSE: FE) today announced it has adopted a new policy that changes the method of accounting for pensions and other post-retirement benefits (OPEB). The company also provided a preview of 2011 earnings. Fourth quarter and full-year 2011 results are scheduled to be reported on February 28, 2012.
FirstEnergy also made a voluntary contribution to its pension plan of $600 million earlier this month. The plan's current funded status is 90 percent on an accumulated benefit obligation basis.
FirstEnergy said it expects to report full-year 2011 basic non-GAAP* earnings of $3.63 to $3.65 per share of common stock, up from its previous guidance of $3.30 to $3.50 per share. On a GAAP basis, the company expects full-year 2011 basic earnings of $2.44 to $2.46 per share.
These 2011 GAAP and non-GAAP earnings expectations include a $0.22 per share benefit as a result of the pension and OPEB accounting change. GAAP earnings expectations for 2011 also include a $0.73 per share decrease due to the mark-to-market impact of the new accounting method, and a charge of $0.38 per share related to the plant retirements that were announced earlier today.
Year-end 2011 common shareholders' equity is expected to increase by approximately $530 million as a result of the pension and OPEB accounting change.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.