Exelon posts higher profits

Chicago-based Exelon Corp, the No. 1 U.S. nuclear power company, posted higher third-quarter operating earnings Friday, citing higher wholesale power prices, increased nuclear output and warmer weather.

The company, which runs two regulated utilities and a merchant unit that sells power at competitive prices, said improved earnings were driven mainly by its merchant wholesale arm.

Net income was $780 million, or $1.15 per share, compared with a loss of $44 million, or 7 cents per share, a year earlier, when it took a charge of $776 million related to its Commonwealth Edison utility arm.

Excluding special items, Exelon said earnings rose to $823 million, or $1.21 per share, from $690 million, or $1.02 per share. Revenue jumped about 14 percent to $5.03 billion.

The company still sees earnings excluding special items of $4.15 per share to $4.30 per share for 2007. Analysts look for $4.30, according to Reuters Estimates.

It raised its range for 2007 net income to $3.90 per share to $4.20 per share from a previous $3.70 to $4.00.

Shares of Exelon rose $1.99 to close at $80.22 on the New York Stock Exchange.

Prior to Friday's earnings release, Exelon shares had risen about 25 percent so far this year, outpacing a gain of about 10 percent in the S&P utility index.

Exelon last year canceled a takeover of Public Service Enterprise Group Inc.