CMS Energy turned things around in the third quarter, reporting a profit of $82 million (34 cents/share) compared to a loss in the year-ago period of $103 million (-47 cents/share) Results include $49 million received from an insurance payment.

The company’s adjusted (non-Generally Accepted Accounting Principles) 3Q net income, which excludes asset impairment charges, the insurance payment and other items, was $32 million (13 cents/share), compared to adjusted net income of $30 million, (13 cents/share) for 3Q 2006.

However, year-to-date results took a turn for the worse compared to a year ago. For the first nine months of 2007, CMS reported a net loss of $100 million (-45 cents/share), compared to a net loss of $58 million (-26 cents/share) for the year-ago period. The 2007 nine-month results include a loss of $242 million (-$1.09/share) primarily linked to sales of the company’s international businesses, including discontinued operations.

For the first nine months of 2007, the company had adjusted net income of $142 million (64 cents/share), compared to adjusted net income of $41 million (18 cents/share) for the first nine months of 2006. Without the adverse effect of mark-to-market adjustments largely due to the company’s former interest in the Midland Cogeneration Venture and discontinued operations primarily linked to sales of international businesses, the 2006 adjusted nine-month results would have been $194 million (88 cents/share), and the 2006 adjusted third quarter results would have been $70 million (31 cents/share).

CMS Energy maintained its guidance for 2007 adjusted earnings of about 80 cents/share and 2008 adjusted earnings of about $1.20/share. CMS said it anticipates that its 2007, and possibly 2008, reported earnings will be lower than its adjusted earnings because of the expected effects of asset sales and other factors. CMS said it isn’t providing reported earnings guidance because of those uncertainties.

“We plan to invest $6 billion in the utility over the next five years in energy efficiency, renewable energy, environmental and customer service enhancements and new power generation and are seeking changes to Michigan’s electric deregulation law to support these investments,” said CEO David Joos.

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