ALLENTOWN, Pa.---PP&L Resources, Inc. Friday (4/24) reported 1998 first quarter net income of $100.5 million or 60 cents per share. Net income for the first quarter of 1997 was $116.8 million or 72 cents per share.

John R. Biggar, PP&L Resources senior vice president-Financial, said most of the decline can be attributed to the much-warmer-than-normal weather in the Northeast during the first quarter of 1998. "Weather accounted for an 11-cent decline in our earnings for this quarter, the largest such variance in the 27 years we have been tracking weather's effect on our earnings," said Biggar.

He said that when both periods are adjusted for the effects of weather, the company's earnings per share were 71 cents for the first quarter of 1998 versus 76 cents per share in the first quarter of 1997.

Even without the dramatic effect of weather, the energy delivered by PP&L, Inc., the company's electric utility subsidiary, decreased by about 0.5 percent compared to the first quarter of last year. Sales to industrial customers were down 1.8 percent from the first quarter of 1997, primarily due to the effects of lower sales resulting from a shutdown of a large steel- producing facility. If the steel industry is excluded, industrial sales showed an increase of 0.8 percent in the first quarter of this year versus last, with total sales reflecting a gain of 0.2 percent in the same period.

Earnings per share were adversely affected by reduced revenues from the phase out of contractual sales to a New Jersey utility, increased operating costs associated with computer information systems and the changes in the timing of planned maintenance work at fossil-fueled power plants. In addition, earnings for PP&L Global, the company's independent power subsidiary, were lower in the first quarter of 1998 compared to last year primarily because of higher interest costs related to additional worldwide investments. Earnings per share also were diluted slightly by the issuance of new shares of common stock since the first quarter of 1997.

Biggar said the adverse effects on earnings were partially offset by increased revenues from the company's Energy Marketing Center, which is now trading energy in 22 states and Canada, and by refinancing activities completed in 1997.

"PP&L Resources is continuing to invest in its retail electricity business to position itself as a major supplier of electricity and energy-related services in Pennsylvania and throughout the mid-Atlantic region," said Biggar. These investments, which are expected to be about $35 million more this year than in 1997, will adversely affect 1998 earnings, Biggar said.

At least one-third of Pennsylvania customers will have the opportunity to select the company that supplies their electricity in January of 1999. PP&L, Inc. is marketing electricity throughout the state through its PP&L EnergyPlus brand. Other mid-Atlantic states also are expected to open up their electricity markets in the near future.

PP&L Resources' earnings for the 12 months ended March 31, 1998,were $1.69 per share compared with $2.04 per share for the same period a year ago. The 12-month earnings were adversely affected by weather, declining sales and lower revenues from the contract with the New Jersey utility. Sales to industrial customers and weather-adjusted total sales for the 12-month period were down 0.9 percent and 0.2 percent, respectively. Excluding the effects of reduced sales in the steel industry, industrial sales reflected an increase of 1.4 percent while total sales increased 0.5 percent for the last 12 months.

In addition, one-time charges related to a windfall profits tax in the United Kingdom and costs associated with the pending acquisition of a local natural gas distribution system in the United States reduced earnings for the 12-month period ending March 31. These charges were partially offset by a one-time benefit resulting from a reduction of the U.K. corporate income tax rate.

Excluding the effects of weather and one-time adjustments, earnings per share were $1.99 and $2.07 for the 12-month periods ended March 31, 1998, and 1997, respectively.