August 4, 2009 / 2:38 PM / 9 years ago

UPDATE 1-PPL Q2 adj profit lags market, cuts '10 view; shrs dip

* Q2 adj EPS $0.32 vs est. of $0.39

* Cuts 2010 EPS outlook to $3.10-$3.50

* Reaffirms 2009 EPS view of $1.60-$1.90

* Shares down 11 pct

Aug 4 (Reuters) - Energy and utility holding company PPL Corp (PPL.N) posted lower-than-expected quarterly earnings on weaker wholesale energy margins and a mild weather that pressured electricity demand, and cut its 2010 outlook.

Shares of the Allentown, Pennsylvania-based company were down nearly 11 percent at $30.26 in morning trade Tuesday on the New York Stock Exchange.

The company reduced its 2010 earnings forecast to a range of $3.10 to $3.50 a share, from its prior view of $3.60 to $4.20 a share, on expectations of lower margins in marketing and trading and a continued decline in 2010 wholesale electricity prices.

For the second quarter, the company posted a net loss of $7 million, or 2 cents a share, compared with earnings of $190 million, or 50 cents a share, a year ago.

Excluding items, the company said it earned 32 cents a share.

Total operating revenue rose 65 percent to $1.67 billion.

Analysts, on average, expected the company to earn 39 cents a share, before items, on revenue of $1.69 billion, according to Reuters Estimates.

PPL also reaffirmed its 2009 forecast of $1.60 to $1.90 per share in earnings from ongoing operations.

For the alerts, please click [ID:nWNBB8436]. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Aardhana Aravindan)

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