ATLANTA - Mirant Corp., one of the largest energy suppliers in the United States, announced a profitless third quarter on Friday and lowered its earnings forecast for the year. <br>
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Mirant took after-tax charges of $150 million, or 33 cents a share, for the three months ended Sept. 30. Excluding those charges, earnings were $149 million, or 33 cents a share. <br>
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That was well below the 47 cents expected by analysts surveyed by Thomson First Call. <br>
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Mirant reported a net loss of $227 million for the first nine months of 2002. After adjusting for operational restructuring and charges related to sales of assets, earnings were $412 million, or 98 cents a share, for the period. <br>
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The company also said it was ``lowering its guidance for 2002 as a result of ongoing adverse market conditions in North America (which include significantly reduced market liquidity), a reduction in its gas business to decrease collateral requirements, and a higher effective-tax rate on the earnings of its Asia businesses.'' <br>
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The company now expects adjusted earnings of $1.00 to $1.05 per diluted share for the year, including 5 to 10 cents in the fourth quarter. <br>
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In after-hours trading following the company's announcements, Mirant shares were at $1.55, up 3 cents from Friday's close on the New York Stock Exchange. <br>
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The company, along with other gas and electricity suppliers, has been caught up in the California power shortage scandal. <br>
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Mirant, a spinoff of Atlanta-based Southern Co., said in November that it overstated net income by $41 million from 1999 to 2002 as it filed a long-delayed second-quarter financial report with the Securities and Exchange Commission. <br>
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Earlier this month, Mirant denied allegations that it intentionally purged potentially damaging data from its computers. The allegation was included in a shareholder lawsuit filed in U.S. District Court, claiming that a former employee ``revealed that he was instructed to delete certain files concerning Mirant's activities in California.'' <br>
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In November, a federal grand jury subpoenaed Mirant and several other companies in an investigation that followed accusations that energy suppliers fixed prices and withheld power to drive up prices during California's energy crisis in 2000 and 2001. Mirant, like the other companies under subpoena, has denied engaging in such practices. <br>
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The company also announced on Friday the sale of its gas production company for $150 million and the sale of its interest in the Shajiao C plant in China for $300 million. <br>
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It predicted year-end liquidity of $1.4 billion.
