TXU Profit Falls as Cool Weather Reduces Demand
Texas power company TXU, which has agreed to the largest buyout ever, said second-quarter earnings fell due to reduced demand from cooler weather, a planned outage at a nuclear site, and lower pricing.
Second-quarter net income was $121 million, or 26 cents per share, compared with a year-earlier profit of $497 million, or $1.07 per share.
Excluding special items, TXU said it earned $430 million, or 93 cents per share.
TXU has set a shareholder vote for Sept. 7 on its nearly $32 billion acquisition by a group led by private equity firms Kohlberg Kravis Roberts and TPG, formerly known as Texas Pacific Group.
The deal has come under criticism from its largest shareholder, money manager Franklin Resources, which said it would vote against the proposed buyout because the offer price was too low. Franklin Resources said it believes TXU's stock would have performed better since
February, when it agreed to the buyout, if there were no deal.
TXU shares have gained nearly 8% since closing at $60.02 on Feb. 23, the last trading day before the deal was announced. In comparison, the broader Standard and Poor's utility index has gained about 1.5% since then.