PNM Resources says 2008 profit may miss estimates

ALBUQUERQUE, N.M. - Energy holding company, PNM Resources Inc. said Wednesday it expects adjusted 2008 profit near the lower end of its forecast range, but said results could miss that expectation if performance at its First Choice Power unit misses current projections, or if bad debts increase.

The company expects full-year earnings of 13 cents to 28 cents per share including the adverse effects of Hurricane Ike.

However, the company said earnings could be below that range if margins decline or if bad debt rises from higher default rates. Bad debt at First Choice Power increased 6.4 million on a pretax basis from the same period in 2007.

Current projections assume normal weather in New Mexico, the company said.

Analysts polled by Thomson Reuters expect earnings of 13 cents per share, on average.

The company also said Wednesday that it swung to a third-quarter loss, including charges and a write-off.

Shares fell 32 cents, or 3.4 percent, to $9.18, in afternoon trading.

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 This material may not be published, broadcast, rewritten or redistributed.