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Naperville, Illinois-based Nicor posted a preliminary second quarter net income of $22.9 million or $0.50 per share, compared to net income of $28.9 million or $0.64 per share in the year-ago quarter.

On average, five analysts polled by Thomson Reuters estimated the company to report earnings of $0.42 per share for the quarter. Analysts' estimates typically exclude special items.

Among others in the industry, Alliant Energy Corp. (LNT) is slated to report its second-quarter results on August 6. Analysts expect the company to report earnings of $0.33 per share for the quarter.

Another peer, Ameren Corp. (AEE) is also scheduled to report its second-quarter results on August 6. Analysts expect Ameren to report earnings of $0.68 per share for the quarter.

Nicor noted that results for the quarter reflect improved operating income in gas distribution and other energy-related businesses, which was more than offset by lower operating income in shipping business, as well as lower corporate operating results. Second-quarter results also reflect lower interest income and pretax equity investment income as well as a higher effective income tax rate in 2009.

Commenting on the results, Russ Strobel, chairman, president and chief executive officer said, "As expected, we're now seeing the positive impacts of rate relief begin to offset the increased operating costs of our gas distribution business. Our shipping business faced continued pressure on volumes due to the economic slowdown, but still delivered year-to-date results that were approximately consistent with 2008."

Total operating revenues for the quarter dropped to $447.6 million from $699.8 million last year.

Revenues from Gas distribution declined to $326.3 million from $560.1 million, while Shipping revenues declined to $83.8 from $102.6 million a year ago. Other energy ventures contributed revenues of $51.2 million, compared to $52.7 million last year.

Gas distribution operating income for the second quarter increased $4.4 million from the prior-year period, reflecting higher gas distribution margin due to base rate increase, partially offset by higher operating and maintenance costs and higher depreciation expense.

Second quarter Shipping operating income decreased $3.2 million from the prior-year period due to lower operating revenues, partially offset by lower operating costs. Other energy ventures operating income increased $1.7 million from the prior-year period on higher operating income in retail energy-related products and services businesses.

Corporate operating results decreased $4.0 million for the quarter compared to previous year, due primarily to the absence of a prior year legal recovery of $3.1 million pretax.

In the first quarter, Nicor reported revenues of $1.11 billion, compared to $1.60 billion last year.

For the first six months of the year, the company posted a preliminary net income of $66.7 million or $1.47 per share, compared to $70.3 million or $1.55 per share in the same period a year ago. Total operating revenues for the six-month period declined sharply to $1.56 billion from $2.30 billion a year earlier.

Looking ahead to the full year 2009, the company said it is reaffirming its earnings guidance in the range of $2.54 - $2.74 per share. Analysts currently expect the company to report earnings of $2.56 per share for the year 2009.

Nicor stock is currently trading at $36.51, down $0.69 or 1.85%, on the NYSE. In the past 52-week period, the stock has traded in the range of $27.50 - 51.99, with an average 3-month volume of 0.45 million shares.

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