CMS Energy Announces Second Quarter Net Income of $80 Million, or $0.32 Per Share, and Affirms Adjusted Earnings Guidance

JACKSON, Mich., July 28 /PRNewswire-FirstCall/ -- CMS Energy announced today reported net income of $80 million, or $0.32 per share, for the second quarter of 2010 compared to reported net income of $75 million, or $0.32 per share, in the same quarter of 2009.

The company’s second quarter adjusted (non-Generally Accepted Accounting Principles) net income, which excludes the effects of legacy issues associated with previously sold assets and certain other items, was $65 million, or $0.26 per share. In the second quarter of 2009, the company had adjusted net income of $67 million, or $0.28 per share.

For the first six months of 2010, CMS Energy had reported net income of $165 million, or $0.67 per share, compared to reported net income of $145 million, or $0.62 per share, for the first half of 2009. The 2010 earnings per share reflect the impact of additional assumed shares outstanding to meet potential conversions of convertible securities, as required by accounting rules.

On an adjusted basis, the company had net income of $158 million, or $0.64 per share, for the first half of 2010, compared to adjusted net income of $138 million, or $0.59 per share for the first six months of 2009.  

CMS Energy reaffirmed its guidance for 2010 adjusted earnings of about $1.35 per share.  Reported earnings could vary because of several factors such as legacy issues associated with previously sold assets.  Because of those uncertainties, the company isn’t providing reported earnings guidance.

John Russell, the president and chief executive officer of CMS Energy, said the second quarter results reflected strong operational performance at the company’s principal subsidiary, Consumers Energy, a Michigan electric and natural gas utility.

“We are maintaining our focus on providing customers with safe, reliable and affordable service and we continue to tightly manage our costs to help create energy value for customers,” Russell said.

In reviewing recent major events, Russell noted Consumers Energy has:

• Deferred development of an 830-megawatt clean coal power plant, primarily because of reduced customer demand for electricity due to the recession, forecasted lower natural gas prices, and excess generating capacity in the Midwest.
• Reached agreements with the Utility Workers Union of America on new five-year labor contracts that cover nearly 3,000 operating, maintenance, and construction employees and about 350 call center customer service representatives.
• Signed contracts with independent developers for more than 240 megawatts of new Michigan-based renewable energy capacity.  The contracts have been submitted for approval to the Michigan Public Service Commission.
• Also signed a contract with Vestas-American Wind Technology to supply 56 wind turbine generators for Consumers Energy’s Lake Winds Energy Park.  The 100 megawatt wind park is scheduled to begin operation in late 2012.

Russell pointed out that the renewable energy contracts are part of the company’s continuing implementation of its Balanced Energy Initiative, a comprehensive plan to meet the power needs of the utility’s 1.8 million electric customers over the next 20 years.

“Our Balanced Energy Initiative includes more than doubling the amount of renewable energy that we supply to customers and continuing our successful energy efficiency programs that are helping customers save energy,” Russell said.

“Consumers Energy already is Michigan’s largest supplier of renewable energy, with 4 percent of the electricity that we supply to customers today coming from renewable sources. By the end of 2012, including the addition of our Lake Winds Energy Park, we project that Michigan-based renewable sources will provide about 8 percent of the power that our customers need.”

CMS Energy (NYSE: CMS) is a Michigan-based company that has an electric and natural gas utility, Consumers Energy, as its primary business and also owns and operates independent power generation businesses.

CMS Energy provides financial results on both a reported (Generally Accepted Accounting Principles) and adjusted (non-GAAP) basis. Management views adjusted earnings as a key measure of the company’s present operating financial performance, unaffected by discontinued operations, asset sales, impairments, or other items detailed in the attached summary financial statements. Certain contingent obligations arising in connection with previously disposed assets or discontinued operations have the potential to impact, favorably or unfavorably, the company's reported earnings in 2010.

This news release contains “forward-looking statements” as defined in Rule 3b-6 of the Securities Exchange Act of 1934, as amended, Rule 175 of the Securities Act of 1933, as amended, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. They should be read in conjunction with “FORWARD-LOOKING STATEMENTS AND INFORMATION” and “RISK FACTORS” sections of CMS Energy’s Form 10-K and Consumers Energy’s Form 10-K each for the Year Ended December 31, 2009 and as updated in CMS Energy’s and Consumers Energy’s Forms 10-Q for the Quarter Ended March 31, 2010.

CMS Energy’s and Consumers Energy’s “FORWARD-LOOKING STATEMENTS AND INFORMATION” and “RISK FACTORS” sections are incorporated herein by reference and discuss important factors that could cause CMS Energy’s and Consumers Energy’s results to differ materially from those anticipated in such statements.

For more information on CMS Energy, please visit our web site at:  www.cmsenergy.com

SOURCE CMS Energy