AES Loses $340 Million on Restructuring Costs

By Steven Mufson
Washington Post Staff Writer
Tuesday, November 7, 2006

Multinational energy producer AES Corp. lost $340 million in the third quarter because of a restructuring of its holdings in a Brazilian utility.

The Arlington-based company said the loss, equal to 52 cents a share, compares with a profit of $244 million (37 cents) in the comparable period a year earlier.

But revenue rose 14 percent, to $3.15 billion, and the utility and power-generating company beat analysts' expectations. AES shares closed at $22.64, up 73 cents, or 3 percent.

AES said it sold about half of its stake of Eletropaulo Metropolitana Eletricidade de Sao Paulo SA, a regulated Brazilian utility, and used the proceeds to repay all $608 million in debt and interest owed to the Brazilian National Development Bank. AES losses on the deal included $537 million on the sale of the stock, $18 million of currency losses and $66 million of interest expense. A tax benefit offset $121 million of those losses.

Company spokeswoman Robin Pence said the sale would let AES bring earnings from Eletropaulo back to the parent, which she said had not been permitted under restrictions on the loan.

· Comstock Homebuilding Cos. of Reston lost $5.8 million (36 cents a share) in the third quarter, compared with a profit of $11.5 million (81 cents).

The company said revenue fell by more than half, to $35.3 million from 78.4 million, as new orders fell 21 percent and it took a $1.8 million write-off to reflect the declining value of its real estate inventory. Shares closed flat at $5.

· HealthExtras Inc. of Rockville, which manages prescription benefits for private and government employers, earned $8.8 million (21 cents a share) in the third quarter, up 40 percent from $6.3 million (15 cents). Revenue more than doubled, to $363.1 million from $166.8 million. Shares closed at $22.80, up 9 cents.

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