Southern California Edison parent Edison International said Friday that charges related to a tax settlement created a net loss in its second quarter.
The Rosemead company reported a net loss of $16 million (-5 cents per share), compared with net income of $261 million (79 cents) a year earlier. Revenue fell 19 percent to $2.83 billion, with lower natural gas prices hurting the company’s Edison Mission Group, which operates coal and natural-gas-fired power plants around the country.
Analysts surveyed by Thomson Reuters on average expected net income of 52 cents a share on revenue of $3.14 billion.
SoCal Edison’s core per-share earnings rose 27 percent as the local unit benefited from a three-year, $1 billion rate increase approved by regulators in March. Edison Mission’s core earnings per share fell 44 percent.
Results include a charge of 81 cents a share from a settlement with the Internal Revenue Service in May and the termination of leases that were part of the settlement, which Chief Executive Theodore Craver Jr. said should relieve uncertainty for investors.
“Although not reflected in our reported earnings, our second quarter core earnings are on track with our expectations for the quarter,” Craver said in a statement.
Shares were up 57 cents, or 2 percent, to $31.87 in midday trading on the New York Stock Exchange.