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HEI’s earnings
By Russ Lynch
drop 16.2 percent
Star-BulletinHawaiian Electric Industries Inc. had a 16.2 percent drop in its second-quarter profit, as a boost in profits from its Hawaii utilities operations and its American Savings Bank subsidiary failed to counter the previously announced loss in a power venture in the Philippines.
HEI reported a net profit of $19.1 million, or 59 cents a share, for the three months through June 30, down from a net of $22.8 million, or 71 cents a share, in the year-earlier quarter.
The company took a net loss of $8.8 million for the second quarter in its HEI Power Group from East Asia Power Resources Corp., a Philippine operation in which it has a 46 percent interest. In the second quarter last year, the international power group had a net loss of $1.4 million.
HEI said on July 14 that the bigger Philippines loss would hurt the parent company's earnings, but did not say by how much.
The quarterly earnings report, issued after the stock market closed yesterday, showed the impact but also showed that HEI's much-bigger operations were doing well.
Its net income from electric utilities in Hawaii was up 25 percent compared with the 1999 quarter, due to higher kilowatt-hour sales and trimmed operating costs. HEI said it had a net of $24 million from the utilities in the latest quarter, compared with $19.2 million in the 1999 quarter.
The bank's net income of $9.4 million in the latest quarter was up from $9.1 million in the year-earlier quarter.
Total HEI revenues for the latest quarter were $307.8 million, up 22 percent from $252.3 million a year ago, but the lower profit caused Robert F. Clarke, HEI chairman, president and chief executive officer, to call the quarter's results "disappointing."
HEI shares closed up 12 cents today at $31.44.
The stock is up 8.87 percent for 2000 but is down 5.52 percent from a year ago.
