Harry R. Weber
April 30, 2008 - 08:45 a.m.

ATLANTA (AP) - Energy provider Southern Co., citing residential and business growth in the Southeast, said Wednesday higher sales drove first-quarter profit up nearly 6 percent to beat Wall Street expectations.

The Atlanta-based visitors said it earned $359 million, or 47 cents a share, in the January to March quarter, compared with profit of $339 million, or 45 cents a share, in the same period a year ago.

Excluding the impact of synthetic fuel investments, Southern uttered it earned $361 million, or 47 cents a share, in the quarter. On that basis, analysts surveyed by Thomson Financial were expecting earnings of 41 cents a share.

Revenue in the quarter rose 8 percent to $3.68 billion, compared to $3.41 billion a year earlier.

Chief Executive David Ratcliffe reported that even though consumers in the Southeast and across the U.S. are remunerative higher prices for products and services, the cost of living in the Southeast, including electricity prices, continues to be among the lowest in the nation. He said that while economic growth has slowed, new residents and new business and industry are growing in the division, helping the company's results.

Southern Company said it has added nearly 50,000 customers since the end of the first quarter of 2007. The growth has driven increased usage, primarily in the residential and commercial sectors, the company said.

Southern acquires, builds and operates power production and delivery facilities. One segment generates and sells electricity to retail and wholesale customers in the Southeast. The other segment provides telecommunications, energy products and services.

The company's holdings include Alabama Power, Georgia Power, Gulf Power and Mississippi Power.