Nicor reports flat earnings

Nicor Inc.'s third-quarter earnings were flat as stronger results at the natural-gas company's distribution business were offset by a decline at its shipping segment.

Profit missed analysts' expectations and Nicor cut its 2010 target to $3.00 to $3.10 a share from $3.10 to $3.30, mainly owing to lower-than-expected earnings at its shipping business.

The company's gas-distribution business has reported stronger results in recent quarters on rate increases and cost cuts.

Nicor, whose main business is its utility operations centered in northern Illinois, reported profit was flat at $13.6 million, or 30 cents a share. The latest period included a $1.3 million pretax reduction to the company's reserve for its mercury inspection and repair program.

Revenue increased 8.3 percent to $352.5 million after falling 26 percent a year earlier on low natural-gas prices.

Utility gas deliveries fell 7.8 percent on weaker residential sales, while wholesale deliveries rose 7.7 percent on stronger industrial sales.