CH Energy Group lowers 2007 guidance
CH Energy Group (NYSE: CHG) today lowered its 2007 full-year earnings guidance due to a lower earnings contribution from the company’s Griffith fuel distribution subsidiary and higher corn prices coupled with lower ethanol prices.
The Poughkeepsie, N.Y.-based company said it now forecasts earnings between $2.50 and $2.70 per share, down from the previously forecasted range of $2.55 and $2.80.
With regard to the Griffith fuel distribution subsidiary, the small cap said earnings contributions were depressed by $0.05 as the result of unusually warm weather at the beginning of the current heating season. Specifically, CH Energy said it lowered its estimate to between $0.20 and $0.25 per share from $0.25 and $0.30 per share.
Additionally, corn prices and lower ethanol prices have caused CH Energy to lower its earnings expectations for its Cornhusker Energy Lexington plant. The firm now expects earnings for this unit to range between $0.40 and $0.45 per share, down from previously forecasted $0.40 and $0.50 per share.
The small cap also noted that 2007 earnings expectations for its regulated utility Central Hudson Gas & Electric Corporation remain unchanged at between $1.90 and $2 per share.
Shares of CH Energy Group (CHG) were halted in pre-market trading.
