Westar reports higher profits

Westar Energy Inc. on Friday said an income tax benefit and higher sales contributed to profits more than doubling during the first quarter.

Without the tax benefit, however, the largest electric utility in Kansas came in under Wall Street expectations.

For the three months ending March 31, Topeka-based Westar reported earning $60.9 million, or 63 cents per share, compared with $29.9 million, or 34 cents per share, during the same period a year ago.

Not including the $39.4 million tax benefit, the result of a tax audit covering the period between 1995 and 2002, the company said it would have earned $21.5 million, or 23 cents per share.

Analysts surveyed by Thomson Financial, who typically ignore one-time items, had expected earnings of 31 cents per share.

In a release, Westar added earnings also reflected the company selling 10.3 million additional shares since last year to pay for the company’s growth.

Chief Executive Officer Bill Moore said the results met internal expectations.

“We expected earnings in the quarter apart from the tax benefit to be down compared to last year, largely because of capital investments we have made to serve customers that are not yet reflected in our prices,” Moore said, adding that Westar will ask Kansas regulators later this month for a rate increase to pay for those investments.

Revenue during the quarter rose 9.8 percent to $406.8 million, well above the $396.3 million predicted by analysts.

The company reaffirmed its earlier guidance of annual profits between $1.50 and $1.65 per share. Analysts are expecting earnings of $1.53 per share.

Westar shares, which have traded in a 52-week range of $21.75 to $28.35, were up 8 cents to $23.50 in midday trading Friday.