By Mike Boyer
The Cincinnati Enquirer

Cinergy Corp. said Friday that net earnings rose 7 percent in the fourth-quarter from a year ago despite milder weather, lower industrial sales and higher depreciation and financing costs.

The parent of Cincinnati Gas & Electric said net income for the three months ended Dec. 31 was $107.1 million, or 59 cents a share, up from $100.2 million, or 58 cents a share a year ago.

Revenues rose 5 percent to $1.12 billion from $1.06 billion a year ago.

The earnings results were below the average analyst estimate of 63 cents a share. Cinergy shares closed Friday at $39.22, up 29 cents.

The latest quarter included charges of a penny a share to complete a voluntary retirement and severance program.

Cinergy said fourth-quarter earnings from its regulated utilities slipped to 26 cents a share from 55 cents a year ago. Earnings from its commercial gas and electric sales, however, increased to 34 cents a share from 9 cents a year ago. The increase was attributed to higher profits from generation and supply contracts and lower operating and administrative costs.

For the year, Cinergy said net earnings rose 30 percent to $469.8 million, or $2.63 a share, from $360.6 million, or $2.13 a share, a year ago.

Last year's results included a gain of 20 cents a share from changes in accounting principles and discontinued operations. The company also incurred charges totaling 11 cents a share for completion of the voluntary severance plan, a write-off of an investment and resolution of Enron bankruptcy claims.

Total revenues in 2003 rose 8 percent to $4.4 billion from $4.06 billion in the prior year.

"Our continued emphasis on operating excellence has given us the ability to perform well despite mild weather and a sluggish economy,'' chairman James E. Rogers said.

Last week, Cinergy raised its annual dividend 2.2 percent to $1.88 a share.

In another report:

• Bank of Kentucky Financial Corp.: Double-digit gains in fee and interest income helped the parent of the Bank of Kentucky post record profits last year.

The banking company earned $9.4 million, or $1.55 a share, up from $8.4 million, or $1.41 share, during 2002. For the fourth quarter, the Bank of Kentucky made $2 million, or 35 cents a share, down from $2.3 million, or 36 cents a share, during the same-year ago period.

The Bank of Kentucky, which operates 25 branches in the Northern Kentucky area, said fee income rose 62 percent last year from 2002, helped largely by a $2.9 million gain from the sale of mortgages.

The company also said net interest income rose 22 percent last year.

The company said fourth-quarter profits dropped as the sale of mortgages dropped 44 percent from the same period in 2002. It said assets grew last year to $815 million from $779 million in 2002.

Enquirer reporter Jeff McKinney contributed to this report. E-mail mboyer@enquirer.com.