American States Water’s Profit Falls 53 Percent

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American States Water Co. said Thursday its fourth-quarter net income dropped by more than half, in part hurt by impairment charges. But the results still exceeded Wall Street expectations when one-time charges were subtracted.

The San Dimas-based water utility reported net income of $2.9 million (16 cents per share), compared with net income of $6.1 million (35 cents) a year ago. Revenue rose 14 percent to $84.2 million.

The company took a goodwill impairment charge of $7.7 million (27 cents) for the reduced value of a subsidiary in Arizona. In addition, the 2008 quarter had benefitted by a regulatory ruling that yielded $3.3 million in pretax income.

Excluding these items, company said it earned 40 cents per share. Analysts surveyed by Thomson Reuters expected adjusted earnings of 36 cents per share on revenue of $83.4 million.

For the full 2008 year, net income fell 22 percent to $22 million ($1.26), as revenue rose nearly 7 percent to nearly $319 million. Excluding one-time charges, the company said it earned $1.48 per share, better than analysts’ estimates of $1.41.

American States Water shares closed up $1.95, or 6 percent, to $32.55 on the New York Stock Exchange.

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