Nicor Inc.’s third-quarter earnings were flat as stronger results at the natural-gas company’s distribution business were offset by a decline at its shipping segment. Profit missed analysts’ expectations and Nicor cut its 2010 target to $3 to $3.10 a share from $3.10 to $3.30, mainly owing to lower-than-expected earnings at its shipping business.
The company’s gas-distribution business has reported stronger results in recent quarters on rate increases and cost cuts.
While Nicor’s tropical shipping business reported that revenue turned up in the latest quarter on higher rates, the Bahamas and Caribbean markets remained challenging. Shipping earnings slid 45 percent on higher operating costs.
Nicor, whose main business is its utility operations centered in northern Illinois, reported profit was flat at $13.6 million, or 30 cents a share. The latest period included a $1.3 million pre-tax reduction to the company’s reserve for its mercury inspection and repair program. Analysts polled by Thomson Reuters most recently forecast 32 cents.
Revenue increased 8.3 percent to $352.5 million after falling 26 percent a year earlier on low natural-gas prices.
Operating margin fell to 8.6 percent from 9.2 percent amid higher gas costs and operating and maintenance expenses that included an increase in bad-debt expense.
Utility gas deliveries fell 7.8 percent on weaker residential sales, while wholesale deliveries rose 7.7 percent on stronger industrial sales.
Shares closed Monday at $47.21 and were inactive premarket.
