Pension charge results in 4Q loss at FirstEnergy

FirstEnergy Corp. said it swung to a net loss in the fourth quarter on a one-time charge related to employee pensions, but its adjusted earnings beat analyst expectations.

The Akron-based energy company that generates and distributes electricity in Pennsylvania announced Tuesday that Executive Chairman Anthony Alexander will leave the company and its board of directors at the end of April.

Alexander stepped down as CEO on Jan. 1 after 10 years and was replaced by Charles Jones. He stayed on as executive chairman to aid in the transition.

The company said George Smart, lead independent director on the board, will become chairman May 1.

In the October-December quarter, FirstEnergy recorded a net loss of $306 million, or 73 cents a share, compared with net income of $142 million, or 34 cents a share, in the same quarter a year earlier.

Without the pension costs, FirstEnergy said its adjusted profit was 80 cents a share, compared with 75 cents a year earlier, according to its announcement after markets closed. Analysts expected adjusted profit of 75 cents a share, according to Bloomberg.

In after-hours trading, FirstEnergy's shares declined 16 cents to $36.77.

Revenue declined slightly in the quarter to $3.5 billion, from $3.6 billion a year earlier.

FirstEnergy operates the Beaver Valley nuclear plant and Bruce Mansfield coal-fired plant, both in Shippingport. It also owns the West Penn Power, Penelec, Met-Ed and Penn Power utilities in Pennsylvania.

Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or anixon@tribweb.com.