Pinnacle West Capital profit falls 27 pct in 3Q

PHOENIX - Electricity and energy provider Pinnacle West Capital Corp. said Tuesday its net income for the third quarter fell 27 percent from a year earlier due to milder weather and higher costs related to fuel and expanding the electric system.

Net income fell to $151.6 million, or $1.50 per share, down from $208.7 million, or $2.07 per share a year earlier. Revenue fell 10 percent to $1.08 billion.

The results were below analysts' average expectations of a 7 percent drop in revenue to $1.12 billion and a 22 percent fall in earnings to $1.56 per share, according to Thomson Reuters.

Pinnacle West shares rose 14 cents to $32.70 in Tuesday afternoon trading.

Arizona Public Service, Pinnacle's main subsidiary, showed a 44 percent decrease in operating profit to $160 million, down from $204 million.

Real estate subsidiary SunCor Development Co. saw its operating loss increase to $7 million in the quarter from a loss of $1 million a year earlier.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.