PNM Resources swings to 3Q loss due to Ike

ALBUQUERQUE, N.M. - PNM Resources Inc., an energy holding company, on Wednesday said it swung to a third-quarter loss, due to decreased demand and depressed prices as a result of Hurricane Ike in Texas.

The company reported a loss of $5.5 million, or 6 cents per share, compared with earnings of $8.4 million, or 11 cents per share a year earlier. The results include charges recorded by its First Choice Power unit and a write-off of emission allowances at EnergyCo totaling 20 cents per share.

Analysts polled by Thomson Reuters expected earnings of 13 cents per share. Analyst's estimates do not always include charges.

Revenue rose 6.5 percent to $607.1 million from $569.9 million during the same period last year. Analysts surveyed by Thomson Reuters forecast revenue of $616.5 million.

Hurricane Ike hurt sales at the company's First Choice Power and TNMP Electric units and limited sales opportunities for EnergyCo as energy wholesale prices fell, the company said. The storm also forced First Choice Power to sell excess power at rates lower than purchase prices. Bad debt at the unit increased $6.4 million on a pretax basis from the same period in 2007.

The company reaffirmed its full-year earnings forecast but said it could miss the expectation if margins decline at First Choice Power, or if bad debts increase.

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