FirstEnergy

AKRON OH – FirstEnergy Corp. parent of Metropolitan Edison, reported second quarter 2008 basic earnings per share of common stock of $0.86 ($0.85 diluted) on net income of $263 million and revenue of $3.2 billion. This compares with second quarter 2007 basic earnings per share of $1.11 ($1.10 diluted) on net income of $338 million and revenue of $3.1 billion. The company also announced that full-year 2008 non-GAAP(*) earnings guidance has been revised to $4.25 to $4.35 per share, from a previous range of $4.15 to $4.35 per share.

“We remain confident in our strategies for achieving our operational and financial targets for the year,” said President and Chief Executive Officer Anthony J. Alexander. “As a result, we have narrowed our earnings guidance for 2008 to the top half of our previous range.”

Second quarter 2008 results primarily reflect the impact of higher purchased power costs due to market prices that have increased substantially compared to the same period in 2007. The quarter was also affected by lower distribution deliveries resulting from milder weather, fossil plant maintenance outages, lower investment income, and rising fuel costs.

PPL

ALLENTOWN - PPL Corporation reported declines in both second-quarter and first-half earnings for 2008, compared with the same periods of 2007.

PPL’s reported earnings in the most recent quarter were $0.50 per share, compared with $0.88 per share a year ago. For the first six months of 2008, PPL reported earnings of $1.19 per share, compared with $1.41 per share a year ago. 

Contributing to the declines in earnings versus 2007 were: the divestitures of PPL’s electricity delivery businesses in Latin America, including the loss of operating earnings; a 2007 U.S. tax benefit that did not recur in 2008; rising fuel costs; and the loss of synfuel-related earnings. Partially offsetting these negative factors were improved margins from energy marketing and trading activities.

Second-quarter earnings from ongoing operations also declined, to $0.50 per share, compared with $0.63 per share a year ago. For the first six months of 2008, earnings from ongoing operations were $1.11 per share, compared with $1.28 per share a year ago.

“As we stated last quarter, we expect stronger second-half margins in our supply business segment, compared with first-half margins,” said James H. Miller, PPL’s chairman, president and chief executive officer. “However, on top of the previously announced loss of several key 2007 earnings contributors, the continued increase in coal commodity and transportation costs, combined with lower than planned results from our marketing and trading activities, prompts us to lower our 2008 ongoing earnings forecast today.”

PPL lowered its 2008 forecast of earnings from ongoing operations to $2.25 to $2.35 per share from $2.35 to $2.45 per share.