Allete 2009 forecast misses Wall St estimates

Duluth, Minn. - Allete Inc, a regional utility, on Friday predicted 2009 earnings well below Wall Street estimates, due to expected lower demand and higher expenses.

The Minnesota-based company forecast 2009 earnings between $2.10 and $2.35 per share from net income of between $67 and $75 million. Analysts polled by Thomson Reuters estimated earnings of $2.66.

The company said it expects a decline in production in 2009 from 2008 levels, due to decreased electricity demand from industrial customers. Allete said it intends to remarket available power to other power suppliers in order to mitigate the earnings impact of lower retail sales. The company also expects to sell electricity to Mesabi Nugget, a new industrial customer with a 15 megawatt contract.

Shares of Allete fell $2.72, or 8.5 percent, to $29.31, just moments after it hit a new 52-week low of $28.28. Its price range over the last year has been $31.04 and $49.00.

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