Dominion releases second-quarter earnings figures

Daily Staff Reports

Dominion has posted its second-quarter earnings.

Its unaudited reported earnings in the second quarter of 2012 were $258 million, which equates to 45 cents per share, down from $336 million and 58 cents for the second quarter of 2011, according to a news release from the power company.

Those earnings are determined in accordance with Generally Accepted Accounting Principles.

Second-quarter operating earnings were $337 million -- 59 cents a share -- down slightly from last year's $338 million, according to the release, which states operating earnings are "reported earnings adjusted for certain items."

"Dominion uses operating earnings as the primary performance measurement of its earnings guidance and results for public communications with analysts and investors," the release states. "Dominion also uses operating earnings internally for budgeting, for reporting to the board of directors, for the company's incentive compensation plans and for its targeted dividend payouts and other purposes. Dominion management believes operating earnings provide a more meaningful representation of the company's fundamental earnings power."

The release attributes the main differences between GAAP earnings and operating earnings in May-June to the late June storms and charges related to merchant generations plants that are for sale or have been sold.