Power company Exelon Corp. forecast a 5 cent and 3 cent reduction for its 2010 and 2011 earnings respectively, hit by the combined effect of pension contributions and the recently passed tax legislation.
The Chicago-based company said the direct impacts of the tax legislation will reduce its 2010 earnings by about 1 cent per share and 2011 earnings by about 11 cents per share because of a cut in the manufacturing tax deduction for which it was eligible.
The top U.S. nuclear power firm had forecast 2010 adjusted operating earnings of $3.95-$4.10 a share.
Last month, the U.S. Congress approved an $858 billion tax deal between President Barack Obama and the Republicans that will boost the economy but add to the budget deficit.
Exelon said in the first quarter it will contribute about $2.1 billion to its pension plan, including $800 million it was previously expected to contribute in 2011. The company said it sees the contributions to increase the plan’s funded status from about 77 percent to 89 percent as of Dec. 31, 2011.E
Boo. Hoo.