Westar Reports Steady Earnings for 2009, Stays Optimistic About 2010

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Energy company Westar Energy Incorporated (NYSE:WR) (Topeka, Kansas) saw steady earnings and revenue for full-year 2009, after a dip in fourth-quarter earnings. Net income was $11.14 million for the fourth quarter, a 50.77% decrease from the same period last year, and $174.11 million for the full year, which was only a 1.73% decrease from 2008.

Total revenues were $440.12 million for the fourth quarter, an 8.38% increase year-over-year, and $1.86 billion for the full year, a 1.05% increase from 2008.

Westar says the slight dip in 2009 earnings stemmed from lower energy sales, lower average wholesale energy prices, and higher income tax expenses. Mild summer weather and a weak economy, which hampered industrial sales, also were cited as reasons.

Bill Moore, the president and chief executive officer of Westar, said in a conference call that the company had "not seen anything too surprising these past few months." However, he was optimistic about the industry.

"We're seeing signs of life in bioscience and medical sectors, renewable energy design and manufacturing, and in petroleum refining and pipeline transportation," Moore said. "As for the aerospace sector, however, we do not expect significant improvements anytime soon."

Revenues in Westar's major sectors were as follows:

• Retail revenues were $316.88 million for the fourth quarter, a 19.02% increase year-over-year, and $1.38 billion for the full year, a 7.17% increase from 2008.
• Wholesale revenues were $86.49 million for the fourth quarter, a 20.15% decrease year-over-year, and $308.27 million for the full year, a 25.5% decrease from 2008.
• Energy marketing recorded a loss of $280,000 for the fourth quarter, compared to a gain of $1.98 million in the same period last year, but gained $15.44 million for the full year, a 6.33% increase from 2008.
• Other revenues were $37.03 million for the fourth quarter, a 25.23% increase year-over-year, and $154.54 million for the full year, a 25.69% increase from 2008.

Moore said he expects to see a 2% to 3% uptick in industrial sales in 2010, as well as a 4% to 5% rise in residential and commercial sales combined.

Mark Ruelle, the chief financial officer for Westar, said in the conference call that the company's current capital expenditures plan for 2010 is set at $665 million, with the company's environmental segment showing the largest increase. As an example of stronger environmental spending, Ruelle pointed to the Lawrence Energy Center in Lawrence, Kansas, which is set to undergo a $250 million rebuilding of two flue gas desulfurization scrubbers.

Industrial Info is tracking more than 20 active Westar projects in the U.S. worth more than $1.15 billion, including the $260 million Ironwood Windfarm near Spearville, Kansas. The company's plans involve the construction of a 200-megawatt (MW) windfarm utilizing 1.5- to 3-MW wind turbines, and the kick-off date is set for October 2011, with the completion set for July 2012. For more information, visit Industrial Info's North American Industrial Database.

View Plant Profile - 1017735 1088110
View Project Report - 200005657 200002342

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project spending opportunity databases, market forecasts, high resolution maps, and daily industry news.