By Steve Gelsi

NEW YORK (Dow Jones) -- Duke Energy said net income fell 26% as the largest of a fleet of power producers including Spectra Energy, Progress Energy and Constellation Energy weighing in with mostly lower results or even losses on Tuesday.

Hamstrung by sharply lower industrial activity over the winter, power company earnings have lost much of their spark from the economic slowdown, but the sector managed to mostly stay in the black.

While business remains slow, most of the companies at least stuck to their already reduced profit targets for the year and some even issues some upbeat comments.

Against this backdrop, the Dow Jones Utilities Average (DJU) fell 0.7% to 345 on Tuesday. The gauge of power producers is down about 10% this year.

With a market cap of $18 billion, Duke Energy (DUK) tipped the scales as the heavy weight of the day's squad of power company profit updates.

"Despite the effects of the recession and storm-related expenses, our businesses remain fundamentally strong," Duke CEO James E. Rogers said. "We can't control the weather or the economy so we're focused on issues we can control -- managing our costs, improving operational performance, maintaining our liquidity, and making progress on our regulatory and legislative initiatives."

The Charlotte, N.C. utility operator and commercial power producer said earnings fell by more than $100 million to $344 million, or 27 cents a share, from $465 million, or 37 cents a share in the year-ago period. Adjusted net income fell to 28 cents a share from 35 cents a share. Analysts expected earnings of 32 cents a share, according to a survey by FactSet Research.

Operating revenue remained about flat at $3.3 billion. Lower sales to industrial customers in the face of the global recession, and increased operating and maintenance expense in the wake of winter storms, took a bite out of earnings, Duke said.

Duke said it's on track to achieve its 2009 employee incentive target of $1.20 a share, based on adjusted net income.

Shares of Duke fell 0.8% to $14.12 on Tuesday.

Spectra Energy net income falls 19%

Spectra Energy (SE) said first-quarter net income declined to $298 million, or 47 cents a share, compared to $367 million, or 58 cents a share, a year ago.

Adjusted earnings totaled 33 cents, down from 58 cents last year.

Analysts had been expecting earnings of 35 cents a share, according to data compiled by FactSet.

Revenue declined to $1.4 billion, from $1.6 billion last year.

"Despite weaker-than-expected commodity prices and the Canadian exchange rate, there is good reason for optimism," said CEO Greg Ebel.

Spectra Energy shares dipped 3 cents to $15.43.

Sempra Energy profit rises on RBS alliance boost

Sempra Energy (SRE) said first-quarter earnings rose 40% to $316 million, or $1.29 per diluted share, from $242 million, or 92 cents a share in the year-ago period.

Operating revenue fell to $2.1 billion from $3.3 billion. Analysts expected earnings of $1.03 a share, according to a survey by FactSet Research.

Expenses for natural gas fell to $540 million from $1.2 billion.

Earnings at its San Diego Gas & Electric rose to $99 million from $74 million after the effects of a positive rate ruling.

RBS Sempra Commodities earnings nearly doubled to $114 million.

Sempra LNG recorded a loss of $7 million compared with a loss of $9 million in last year's first quarter.

Shares fell 0.7% to $48.01.

Constellation Energy swings to loss

Constellation Energy (CEG) swung to a first-quarter loss of $123.5 million, or 62 cents a share, after earning $145.7 million, or 81 cents in the year-earlier quarter. Revenue fell to $4.3 billion from $4.81 billion.

The company cited divestiture activities, merger termination and strategic alternatives costs and impairments related to its equity investment in Constellation Energy Partners and its nuclear decommissioning trust funds for its loss.

The Baltimore-based company said its earnings would have fallen to 74 cents a share from 95 cents a share when stripping out one-time items. It reaffirmed earnings guidance of $2.90 to $3.20 per share in 2009 and $3.05 to $3.45 per share in 2010.

Analysts polled by FactSet had forecast earnings of 64 cents a share for the quarter and $2.89 for the year. The approval process for its nuclear joint venture with EDF is "moving along steadily," the company said.

Constellation Energy shares fell 4% to $24.16.

Progress Energy net income falls 18%

Progress Energy (PGN) said first-quarter earnings were $182 million, or 66 cents a share, compared to $209 million, or 80 cents a share, in the same period a year ago.

Earnings per share from continuing operations were 66 cents versus 56 cents.

Analysts polled by FactSet Research estimated, on average, earnings per share of 61 cents.

Revenue rose to $2.4 billion from $2.1 billion.

The utility sees 2009 earnings per share of $2.95 to $3.

Progress Energy shares rose 1.5% to $35.73.

Allegheny Energy hammers out flat profit

Allegheny Energy (AYE) said first-quarter earnings remained about flat at $134 million, or 79 cents a share, compared to $136 million, or 80 cents a share, in the year-ago period.

Adjusted earnings per share were 67 cents. Revenue was $957 million compared to $875 million.

Analysts polled by FactSet Research estimated, on average, earnings per share of 73 cents and sales of $1 billion.

Separately, Allegheny said it agreed to sell for $340 million its electric distribution operations in Virginia to Rappahannock Electric Cooperative and Shenandoah Valley Electric Cooperative.

Shares of Allegheny Energy dropped 0.9% to $27.27.

First Energy net income falls by more than half

FirstEnergy Corp. (FE) said first-quarter earnings were $115 million, or 39 cents a share, compared to $277 million, or 90 cents a share, in the same period a year ago.

On an adjusted basis FirstEnergy earned $1.01 a share. Revenue was $3.33 billion compared to $3.28 billion.

Analysts polled by FactSet Research estimated, on average, earnings per share of 91 cents.

First Energy shares fell 0.7% to $42.09.