--  In July and August, Ameren's merchant generation business segment,
        announced the reduction of approximately 145 positions, including about
        50 bargaining unit employees.
    --  In September and October, approximately 100 employees chose to sign up
        for a voluntary separation election offered to approximately 350
        employees of Ameren and its subsidiary companies.

    --  In early November, the corporation announced over 50 involuntary
        reductions of non-bargaining unit positions.

Separated employees have been offered separation benefits consistent with Ameren's standard severance program, which provides either a lump-sum payment of two weeks' pay for each full year of service with a minimum of 13 weeks and maximum of 52 weeks of pay or benefits that are defined in labor contract provisions. In addition, where applicable, separated employees will receive certain other benefits, such as outplacement/financial planning assistance, health insurance premium subsidies and tuition reimbursement.

"We extended these benefits in an effort to help our employees make this difficult transition in this time of economic hardship," said Thomas R. Voss, Ameren president and chief executive officer. "Those same economic conditions make this move necessary for Ameren. We know we must build a more streamlined organization to compete effectively in an environment where costs are rising, energy usage by large industrial customers has dropped and market prices for our merchant generation power have declined significantly."

Voss added that the staffing cuts will not diminish the corporation's ability to continue to provide safe, reliable service.

"This initiative along with the deferral of certain capital expenditure programs and the reduction of many other expenses are part of our continued efforts to maintain our financial strength and flexibility and to deliver solid, long-term returns for our shareholders, while offering high-quality, reliable service to our customers," he said.

To cover the cost of these programs, Ameren recorded a pretax charge to earnings of $17.5 million during the quarter ended Sept. 30, 2009, as reflected in the earnings release distributed on Oct. 30.

With assets of $24 billion, Ameren owns a diverse mix of electric generating plants strategically located in its Midwest market with a capacity of more than 16,300 megawatts. Ameren, through its subsidiaries, serves 2.4 million electric customers and nearly one million natural gas customers in a 64,000-square-mile area of Missouri and Illinois.

SOURCE Ameren Corporation

http://www.ameren.com

Factors favorably affecting core (non-GAAP) third quarter 2009 earnings per share, as compared to the same period in 2008, included utility rate adjustments in Illinois and Missouri, lower operations and maintenance expenses, as well as the revenue-leveling effect of natural gas rate redesign in the Illinois regulated utility segment. Offsetting factors included lower electricity sales in the regulated utilities and lower margins in the merchant generation segment, as a result of much cooler summer weather and economic conditions. Higher interest expense and increased average common shares outstanding also impacted comparative results.

"I am pleased to report that our third quarter core earnings per share were just one cent less than those of the year-ago quarter despite much cooler summer weather and the weak economy," said Thomas R. Voss, president and chief executive officer of Ameren Corp. "Our entire management team is keenly focused on laying a foundation on which we can build and deliver shareholder value in the years to come. Key steps have been taken in this direction over the past few months, including reevaluating and reducing planned expenditures, further strengthening our financial profile and right-sizing our organization. We are also seeking to recover increased costs in our regulated businesses and positioning our merchant generation business to weather current power market conditions and benefit from an expected eventual recovery. We intend to lead the way to a secure energy future for our customers and our communities.

"With our most significant earnings' quarters behind us, we are narrowing our 2009 core earnings per share guidance to a range of $2.70 to $2.90 from our prior range of $2.70 to $3.05. Our new core guidance range reflects reduced sales due to much cooler-than-normal third quarter weather and continued weak economic conditions, as well as dilution from our third quarter common equity offering. The impact of these factors is partially offset by reduced operating and interest expenses, as compared to our prior guidance."

In the third quarter of 2009, at Ameren's regulated utilities, much cooler summer weather and the economic slowdown led to a 10 percent decrease in kilowatthour sales to residential customers and a 3 percent decrease in kilowatthour sales to commercial customers, compared to the year-ago quarter. These sales changes were more modest on a weather-normalized basis, with residential sales declining an estimated 2 percent and commercial sales declining an estimated 1 percent. Cooling degree-days in the 2009 third quarter were 18 percent below those of the 2008 third quarter and 23 percent below normal. The weak economy continued to affect kilowatthour sales by Ameren's regulated utilities to their industrial customers. These sales declined 13 percent from the year-ago quarter, excluding the impact of reduced sales to AmerenUE's largest customer, the Noranda Aluminum, Inc., smelter plant in New Madrid, Mo. Noranda's plant sustained damage because of a power interruption on non-Ameren-owned power lines during a severe January 2009 ice storm. Including Noranda, electric sales to industrial customers declined 18 percent in the third quarter of 2009, as compared to the year-ago quarter.

The following items were excluded from third quarter 2009 and third quarter 2008 core (non-GAAP) earnings, as applicable:

-- Net costs associated with the Illinois comprehensive electric rate

relief and customer assistance settlement agreement (reached in 2007)

reduced net income by $4 million in the third quarter of 2009 and by

$6 million in the third quarter of 2008.

-- Net effects of mark-to-market activity decreased net income by $11

million in the third quarter of 2009 and by $36 million in the third

quarter of 2008.

-- Employee separation programs and the retirement of two generating

units at the merchant generation segment's Meredosia Power Plant

reduced net income by $13 million in the third quarter of 2009.

2009 Earnings Guidance

As previously mentioned, Ameren has updated its expectations for full-year 2009 earnings. GAAP earnings for 2009 are now expected to be in the range of $2.57 to $2.77 per share, compared to the prior range of $2.63 to $2.98 per share. Core (non-GAAP) earnings are now expected to be in the range of $2.70 to $2.90 per share, compared to the prior range of $2.70 to $3.05. The 2009 core (non-GAAP) earnings guidance excludes an estimated 7 cents per share negative impact from the 2007 settlement agreement among parties in Illinois to provide comprehensive electric rate relief and customer assistance and an estimated 6 cents per share negative impact from the costs of employee separation programs and generating unit retirements. Any net unrealized mark-to-market gains or losses will affect GAAP earnings, but are excluded from GAAP and core (non-GAAP) earnings guidance because the company is unable to reasonably estimate the impact of any such gains or losses.

With assets of $24 billion, Ameren serves approximately 2.4 million electric customers and almost one million natural gas customers in a 64,000-square-mile area of Missouri and Illinois. Ameren owns a diverse mix of electric generating plants strategically located in its Midwest market with a generating capacity of more than 16,300 megawatts.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

With assets of $24 billion, Ameren serves approximately 2.4 million electric customers and nearly 1 million natural gas customers in a 64,000 square mile area of Missouri and Illinois. Ameren owns a diverse mix of electric generating plants strategically located in its Midwest market with a generating capacity of more than 16,300 megawatts.

SOURCE Ameren Corporation

http://www.ameren.com

SmarTrend is bearish on shares of AEE and our subscribers received a Downtrend alert on October 01, 2009 at $25.06, which has returned 5% to date.

Write to Chip Brian at cbrian@tradethetrend.com

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