Nicor Reports Prelim Q2 EPS $0.42 vs $0.32 Est and Affirms 2011 Annual Outlook

Nicor Inc. GAS today reported second quarter 2011 preliminary net income, operating income and diluted earnings per common share were $19.2 million, $35.2 million and $0.42, respectively. This compares to net income, operating income and diluted earnings per common share for the same period in 2010 of $24.2 million, $43.4 million and $0.53, respectively. Earnings for the three months ended June 30, 2011, compared to the same period in 2010, reflect higher operating income in the company's gas distribution business, more than offset by lower operating results in the company's shipping and other energy-related businesses, as well as lower corporate operating results. The three-months-ended comparisons also reflect higher pre-tax equity investment income and lower interest expense, partially offset by a higher effective income tax rate in 2011. For the six months ended June 30, 2011, preliminary net income, operating income and diluted earnings per common share were $64.4 million, $101.0 million and $1.40, respectively. This compares to net income, operating income and diluted earnings per common share for the same period in 2010 of $84.7 million, $139.4 million and $1.85, respectively. Year-to-date results for 2010 included a $19.7 million after tax benefit (or approximately $0.42 per share) related to the bad debt tracker (explained in more detail below). Without this benefit, June year-to-date 2010 earnings per share would have been approximately $1.43.