Reliant Delays Earnings Report
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Reliant Resources Inc. delayed its fourth-quarter earnings report and said it will restate last year’s second- and third-quarter results after mistakes the energy trader made in accounting for electricity and natural gas transactions. The stock dropped 14%.
Reliant also halted efforts to sell its business in Europe because bids weren’t high enough, the company said.
Fixing the error will boost second- and third-quarter profit by $100 million to $130 million, the company said. The company cut its earnings forecast for this year by about 9.5% to $1.80 to $2 a share because of the restatement and because of lower power and gas prices, Reliant said. Reliant Energy Inc. controls the company.
Reliant Resources shares dropped $1.87 to $11.95. Reliant Energy fell $1.98, or 8%, to $22.94. Both trade on the NYSE.
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