CMS Trims Forecast, Will Cut Trading Jobs
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CMS Energy Corp., a Michigan utility owner under investigation for sham electricity transactions, cut its profit forecast and halted speculative energy trading. Its shares tumbled to a 14-year low.
Profit will be $1.50 to $1.55 a share this year because of a decline in trading, Chief Executive Kenneth Whipple said. CMS will sell a stake in a U.S. pipeline and other assets to raise $566 million. Analysts had expected a profit of $1.68.
CMS, based in Dearborn, Mich., said it will fire 50 of 200 workers in the trading unit, which last month disclosed $5.2 billion in “wash” transactions that led to CEO William T. McCormick Jr.’s resignation.
CMS shares fell $1.75, or 14%, to $11 on the New York Stock Exchange.
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