ALLETE Reports Solid First Quarter Earnings
"Each of our four businesses performed well this quarter, " said Ed Russell, ALLETE President and CEO. "Our diverse strengths in basic necessities - cars, electricity, water and real estate - continue to help us prosper during times of economic challenge."
Automotive services showed continued growth with net income for the quarter rising by $5.8 million. The 49 percent increase over the same period last year was due in large part to acquisitions made in 2000 and increased financing activity at Automotive Finance Corporation.
Energy services posted a 11 percent increase in net income due to a combination of factors. Property taxes and O&M expenses were down compared to a year ago. Wholesale, residential and commercial margins were higher than last year and helped offset a decrease in industrial margins.
Water services experienced continued strong customer growth of 6 percent over the period. In addition, higher rates in North Carolina, productivity enhancements and an escrow fund adjustment in Florida helped this business segment achieve a 29 percent increase in net income for the quarter over last year.
Investments reported a $6.0 million decrease in net income for the quarter, primarily due to three large real estate transactions that occurred in the first quarter of 2000. ALLETE Properties recently announced that its largest sale ever is expected to close in June 2001. The company's securities portfolio saw strong returns in 2001 compared to 2000, but had less cash to invest due to ALLETE's significant acquisition activity during the past year.
ALLETE is a multi-services company with corporate headquarters in Duluth, Minnesota. ALLETE's holdings include the second largest wholesale automobile auction network in North America; the leading provider of independent auto dealer inventory financing; the largest private water utilities in Florida and North Carolina; significant real estate holdings in Florida; and a low-cost electric utility that serves some of the largest industrial customers in the United States.
The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
