The Laclede Group, Inc. is a public utility holding company committed to providing reliable natural gas service through its regulated core utility operations while engaging in non-regulated activities that provide opportunities for sustainable growth. Its primary subsidiary -- Laclede Gas Company (the Utility) -- is the largest natural gas distribution utility in Missouri, serving approximately 630,000 residential, commercial, and industrial customers in St. Louis and surrounding counties of eastern Missouri. Its principal non-regulated subsidiary is Laclede Energy Resources, Inc. (LER), a natural gas marketer located in St. Louis, Missouri.
Laclede Group's strategy includes efforts to continually improve the performance of its core Utility, develop its non-regulated businesses, and employ a measured approach in the pursuit of other growth opportunities that complement the Utility business. As for the Utility, mitigating the impact of weather fluctuations on Laclede Gas customers while improving the ability to recover its authorized distribution costs and return remains a fundamental component of the Laclede Group strategy. LER continues to focus on growing its markets on a long-term and sustainable basis by providing both on-system Utility transportation customers and customers outside of Laclede Gas traditional service area with another choice in capable and reliable non-regulated natural gas suppliers.
Consolidated net income for fiscal 2008 increased 57% to $77.9 million, and diluted EPS increased 55% to $3.58, representing the company’s sixth consecutive year of record earnings. The net effect of the one-time gain realized on the sale of a subsidiary in 2008 and the impact of that subsidiary's seasonal operating loss for the period prior to the sale amounted to $20.4 million of net income, contributing $.94 to diluted earnings per share for 2008. Importantly, income from the operations of Laclede Gas, LER and other continuing business lines for 2008 increased 26% to $57.5 million, demonstrating solid year-over-year growth. Diluted earnings per share from these continuing operations increased 25% to $2.64 per share for 2008.
Laclede Group's earnings from continuing operations increased at a compound average growth rate of 13.4% from 2004 to 2008. The Company also has continuously paid its dividend since 1946, with a recent 3% increase in November 2008.
