Aug. 4--Akron-based FirstEnergy Corp. (NYSE: FE) reported Monday that profits for ongoing operations held steady at 87 cents a share in the second quarter, despite a 12 percent drop in electric generation and a 9 percent decline in distribution.

A one-time gain from the sale of the company's participation in the Ohio Valley Electric Corp. added 52 cents to per-share earnings, boosting the bottom line 58 percent to $1.36 from an adjusted 86 cents a year earlier.

Analysts polled by Thomson Reuters expected profit of 84 cents per share. Analysts typically exclude one-time items from their estimates.

Total second-quarter profits were $408 million, up from $263 million in the same quarter a year earlier.

Revenue for the period was $3.27 billion, little changed from $3.25 billion in 2008.

FirstEnergy President and Chief Executive Anthony Alexander attributed the steady earnings to improved efficiency and a reduction in costs as the economy continues to take a toll on business.

"While the economy continues to have a significant impact on electricity sales, our results benefited from a corresponding reduction in our operating costs, as well as reduced expenses related to enhanced efficiencies and other changes we've made to our organization," Alexander said in a news release.

The company last week notified 40 more employees that their positions would be eliminated. That came after the utility laid off 335 management and support staff in March during a reorganization.

The company also cut pay by 5 percent through this year for more than 90 percent of the salaried workers. The rest -- higher-paid employees, including top executives -- took up to 25 percent cuts.

"We will continue to focus on operational excellence, strengthening our balance sheet and further reducing our costs to ensure that we have a solid foundation for growth when the economy recovers," Alexander said.

FirstEnergy said deliveries of electricity to industrial customers fell because of declining usage by steel and automotive customers.

Total deliveries from FirstEnergy's utilities decreased 9 percent compared to the second quarter of 2008, primarily a result of milder weather and a 21 percent reduction in usage by industrial customers.

Total electric generation sales decreased 12 percent in the second quarter of 2009 compared to 2008. Sales to the wholesale market decreased 28 percent, while retail sales were down 9 percent.

In addition to lower sales, results were negatively affected by the completion of transition cost recovery for Ohio Edison and Toledo Edison and the absence of cost deferrals related to the end of the Ohio Rate Certainty Plan, as well as higher pension and depreciation expenses, the company said.

In a conference call with analysts, Alexander said the utility had taken an aggressive stance to gain market share with its subsidiary to serve government aggregations in Ohio.

"This year, we've made solid progress to win significant portions of our Ohio utility's loads," he said.

Shares rose 70 cents to close at $41.90.

The Associated Press contributed to this report.

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