Alliant bails out of its Chinese investments

Article Excerpt

ALLIANT ENERGY CORP. $32 (New York symbol LNT; WSSF Rating: Average) has agreed to sell its investments in four Chinese power companies for $84 million. The new owners will assume $23 million in debt related to these operations. Alliant still plans to sell two more plants in China with a book value of $5 million. To put these figures in context, Alliant lost $0.53 a share (total $61.2 million) in the three months ended December 31, 2005. However, that figure includes a $122.8 million writedown of its Brazilian power plants, which it sold in January 2006 for $152 million. In the year-earlier quarter, Alliant earned $0.50 a share ($57.6 million). Selling these foreign assets goes a long way toward cutting Alliant’s risk. But higher fuel and other costs could slow its earnings growth in 2006. The $1.15 dividend yields 3.6%. Alliant Energy is a hold. hold…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.