Nicor earnings in line with expectations

Naperville-based Nicor Inc. today reported first quarter 2009 preliminary net income, operating income and diluted earnings per common share were $43.8 million, $59.9 million and 96 cents respectively.

This compares to net income, operating income and diluted earnings per common share for the same period in 2008 of $41.4 million, $63.2 million and 91 cents respectively.

Earnings for the three months ended March 31, 2009, compared to the same period in 2008, reflect lower operating income in the company’s gas distribution business, partially offset by higher operating income in the company’s shipping and other energy-related businesses, as well as higher corporate operating results.

The three-months-ended comparisons also reflect higher pretax equity investment income, partially offset by a higher effective income tax rate.

“Overall, our consolidated first quarter financial results were in line with our previous expectations,” said Russ Strobel, Nicor’s Chairman, President and Chief Executive Officer. “Our gas distribution business was, as anticipated, negatively impacted by increases in operating costs. But as the benefits from rate relief are realized, we expect to mitigate these gas distribution cost pressures. Our shipping business delivered acceptable results, especially after consideration of the impacts the economic slowdown had on volumes shipped. Our other energy-related ventures produced results that were near our expectations. Meeting our full-year projections depends on continuing to successfully manage costs in all of our businesses, and managing margins in the face of less than expected volumes in our shipping business.”