FirstEnergy Cuts Dividend; Narrows FY13 Earnings Outlook

(RTTNews) - FirstEnergy Corp. (FE) said Tuesday that its Board of Directors has declared a quarterly dividend of $0.36 per share of outstanding common stock.  The dividend will be payable March 1 to shareholders of record on February 7. 

The revised dividend rate equates to an indicated annual dividend of $1.44 per share.  Since 2008 the company had paid a quarterly dividend of $0.55 per share, which was an annual rate of $2.20 per share. 

"This dividend change is expected to preserve a solid and sustainable payment for our shareholders," said FirstEnergy President and Chief Executive Officer Anthony Alexander.  "The revised dividend also provides our company with additional financial flexibility to pursue regulated growth opportunities over the next several years."

FirstEnergy also narrowed its full year 2013 operating earnings guidance to a range of $2.95 to $3.05 per share from its prior guidance of $2.90 to $3.10 per share. 

Additionally, the company provided operating earnings guidance of $2.45 to $2.85 per share for the full year 2014.

Analyst polled by Thomson Reuters currently expect the company to earn $2.97 per share for 2013 and $2.82 per share for 2014.

FirstEnergy is scheduled to report fourth quarter and full year 2013 results on February 25.