Ameren Corp. profit dips in 4Q, dividend slashed

ST. LOUIS - Energy utility Ameren Corp. on Friday reported a sharp drop in fourth-quarter profit and reduced its dividend by nearly 40 percent in an effort to preserve cash amid the weak economy.

Quarterly profit dropped to $57 million, or 27 cents per share, from $108 million, or 52 cents per share, a year ago.

Adjusted for write-downs and other charges, the company said it earned $97 million, or 45 cents per share, in the latest period.

Total operating revenue rose to $1.91 billion from $1.81 billion.

Analysts polled by Thomson Reuters expected the company to earn 36 cents per share on revenue of $2.26 billion for the quarter. Analyst expectations typically exclude one-time items.

For the full year, Ameren earned $605 million, or $2.88 per share, down from $618 million, or $2.98 per share, in 2007. Fiscal year revenue climbed to $7.84 billion from $7.56 billion but operating costs climbed.

"Despite a very challenging economic environment, as well as volatile and uncertain capital, credit, and commodity market conditions, we were able to report 2008 core earnings in line with our expectations," Gary Rainwater, president and chief executive, said in a statement.

Ameren said it has made adjustments for the tough economy, including increasing rates in some of its regions and reducing its spending plans, while keeping roughly $1.3 billion cash on hand.

But it lowered its dividend, saying it was a prudent step that would enhance its financial strength at this time and put it in line with dividend payouts of its peers.

The board declared a 38.5 cent per share dividend, payable Mar 31 to shareholders of record as of March 11. The payout totals an annual dividend of $1.54 per share, a 39 percent reduction from its previous annual dividend of $2.54 per share.

Management said it remains committed to its long-term business strategy and hopes to grow the dividend level as operations increase and cash flow improves.

Shares of the company, which operates in Missouri and Illinois, fell 25 cents in after-hours electronic trading to $31.75, having closed the regular session down 29 cents at $32 Friday.

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