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Fortis earnings fall on currency reversal, acquisition expenses

A Fortis power line, with CEO Stan Marshall

Paul Daly

Fortis Inc. is reporting lower third-quarter net earnings, with the power producer and electricity and natural gas distributor citing foreign exchange reverses and acquisition-related expenses.

The Newfoundland and Labrador-based concern says net income attributable to common equity shareholders was $45-million or 24 cents per share in the three months ended Sept. 30.

That compared with net income of $56-million or 30 cents per share in the same 2011 period.

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Revenue rose $15-million to $714-million from 699 million.

"In 2012 earnings for the third quarter and year to date were reduced by $3.5-million and $10-million, respectively, related to foreign exchange and CH Energy Group Inc. acquisition-related expenses," the company said in a release.

In 2011 earnings for the third quarter and year to date were favourably impacted by a one-time, $11-million after-tax merger termination fee paid to Fortis and $2.5-million of foreign exchange.

On the Toronto Stock Exchange, Fortis shares were up 21 cents at $33.98 in late-day trading Thursday.

Fortis serves more than two million gas and electricity customers in Canada. Its regulated holdings include electric utilities in five Canadian provinces and two Caribbean countries and a natural gas utility in British Columbia. It also owns non-regulated generation assets, primarily hydroelectric, across Canada and in Belize and in New York state, and hotels and commercial office and retail space in Canada.

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