Texas power company TXU, which has agreed to the largest leveraged buyout ever, reported a quarterly loss on Wednesday, citing charges related to a sharp cut in plans for new coal-fired power plants.
The first-quarter net loss was $497 million, or $1.09 per share, compared with a year-earlier profit of $576 million, or $1.22 per share.
TXU said it took an after-tax charge of $941 million, or $2.02 per share, including a $463 million charge for canceled power plant projects and a $449 million charge for changes in the market value of its trading positions.
Excluding special items, operating earnings were 96 cents per share, down from $1.12 a year earlier and well below analysts' average forecast of $1.11 as compiled by Reuters Estimates.
"Earnings at this point is moot because of the pending deal," said an analyst who covers the company.
Results were also hurt by planned outages at its nuclear and coal plants as well as lower average retail pricing, the Dallas-based company said.
Revenue fell 27.6% to $1.67 billion.
TXU, the largest power generator in Texas, agreed in February to be acquired for nearly $32 billion by a group led by private equity firms Kohlberg Kravis Roberts and TPG, formerly known as Texas Pacific Group.
To gain support for the deal from environmental groups, TXU said it would build only three coal-fired power plants, down from original plans for 11.
The company has also begun implementing a 10 percent electricity rate cut to push along the deal.