Naperville, IL-based Nicor Inc. on Thursday reported its quarterly profit took a hit after it took charges to settle a class-action lawsuit. The gas distributor reported first quarter net income of $1.9.6 million (44 cents/share), down from $45.9 million ($1.04) for the same period of 2003.

Quarterly results included a $38.5 million (52 cents/share) charge to settle the lawsuit, which had been pending in Chicago in a federal court since 2002 against Nicor and some of its management team (see Daily GPI, April 20). Excluding the charge, the company would have met analysts’ forecasts of 96 cents/share. Nicor’s revenue fell to $1.12 billion from $1.17 billion in 1Q2003.

“We are pleased that overall first quarter results, absent the litigation charge, are in line with our expectations,” said CEO Thomas L. Fisher. “Looking ahead for the remainder of the year, we expect both our shipping segment and our other energy-related businesses to achieve overall earnings improvement compared to 2003, while our utility is expected to have earnings below those of 2003.”

Going forward, Nicor kept its 2004 earnings forecast of $1.58-$1.78/share. It had earlier forecast $2.10-$2.30, but noted the adjustment reflected the first quarter lawsuit charges.

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