ALLETE, Inc.: SWOT Analysis & Company Profile

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					ALLETE, Inc.

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ALLETE, Inc.: SWOT Analysis & Company
Profile


Reference code: BRAE036CP10-Q4

Published: Apr 2010




Business Review
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813



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ALLETE, Inc. - SWOT Profile                                                        Page 1
ALLETE, Inc.

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ALLETE, Inc. - Company Overview

ALLETE, Inc. (ALLETE) is a diversified company that provides fundamental services. It is mainly engaged in the provision
of energy services in the upper Midwest and also participates in real estate holdings in Florida. The company's business is
comprised of Regulated Operations, and Investments and Other. The Regulated Operations segment is engaged in the
retail and wholesale of rate-regulated electric, natural gas, and water services. The Investments and Other segment are
engaged in the coal mining business in North Dakota and real estate business in Florida. The company operates its
business activities through four of its subsidiaries, namely, Minnesota Power, Superior Water Light and Power, BNI Coal,
and ALLETE Properties. ALLETE mainly serves the taconite, paper, pulp, wood products, and pipeline industries. It is
headquartered at Duluth in Minnesota, the US.


Financial Performance

The company reported revenues of (U.S. Dollars) USD 759.10 million during the fiscal year ended December 2009, a
decrease of 5.23% from 2008. The operating profit of the company was USD 106.00 million during the fiscal year 2009, a
decrease of 12.97% from 2008. The net profit of the company was USD 61.00 million during the fiscal year 2009, a
decrease of 26.06% from 2008.




ALLETE, Inc. - Key Facts

ALLETE, Inc., Key Facts

                                  30 West Superior Street, Duluth,
                                  Minnesota (MN), 55802, United      Ticker Symbol, Stock
Corporate Address:                                                                              ALE (New York Stock Exchange)
                                                                     Exchange
                                  States


Telephone                         + 1 218 2795000                    No. of Employees           1,411



Fax                               + 1 218 7233944                    Financial Year End         December



URL                               www.allete.com                     Revenue (in USD Million)   759.10



Industry                          Alternative Energy , Power



Locations                         United States

Source: Annual Report, Company Website, Primary and Secondary Research




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ALLETE, Inc. - SWOT Profile                                                                                         Page 2
ALLETE, Inc.

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ALLETE, Inc. - Business Description

ALLETE through its subsidiaries is engaged in the generation, transmission, and distribution of electric power in the US.
The company operates through two reportable business segments, namely, Regulated Operations segment and
Investments and Other segment .

Regulated Operations segment is engaged in the retail and wholesale of rate-regulated electric, natural gas, and water
services in northeastern Minnesota and northwestern Wisconsin. This segment includes regulated utilities Minnesota
Power and Superior Water Light and Power (SWL&P). Minnesota Power provides regulated utility electric service in
northeastern Minnesota to almost 142,000 retail customers and wholesale electric service to 16 municipalities. SWL&P
provides regulated electric service, natural gas and water service in northwestern Wisconsin to 15,000 electric customers,
12,000 natural gas customers and 10,000 water customers.

Investments and Other segment is engaged in the coal mining business in North Dakota; and real estate business in
Florida. This segment is comprised of BNI Coal and ALLETE Properties. BNI Coal owns and operates a lignite mine near
Center, North Dakota; delivering the lowest-priced lignite and has reserves base of 600 million tons. ALLETE Properties
carries real estate operations in various locations in Florida. The company holds three major projects in various stages of
development namely Town Center at Palm Coast, Palm Coast Park and Ormond Crossings.

In addition, the company through its wholly owned subsidiary Rainy River Energy owns approximately 8% of American
Transmission Company (ATC). ATC provides transmission service under rates regulated by the FERC that are set in
accordance with the FERC’s policy of establishing the independent operation and ownership of, and investment in,
transmission facilities.

During the fiscal year ended 2008, the company recorded USD 689.4 million from its Regulated Operation segment and
USD 77.3 million from its Investment and Other segment.




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ALLETE, Inc. - SWOT Profile                                                                                      Page 3
ALLETE, Inc.

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ALLETE, Inc. - Major Products and Services

Allete core business is energy and real estate and it is also into automotive, water, natural gas and telecommunication
industry. The company's key products and services includes:

ALLETE, Inc., Major Products and Services
Products:

Coal fired based steam energy generation

Coal mining

Real estate

Telecommunication

Wind based energy generation

Services:

Clean water supply

Natural gas transmission and distribution

Power distribution

Power transmission

Real estate development and leasing

Brands:

ALLETE properties

BNI coal

Minnesota power

Superior water light and power
Source: Annual Report, Company Website, Primary and Secondary Research




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ALLETE, Inc. - SWOT Profile                                                                                      Page 4
ALLETE, Inc.

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ALLETE, Inc. - History

ALLETE, Inc., History

    Year                Event type                                                  Description


   2008      Others                             In 2008, Taconite Ridge wind farm construction completed.


                                                In 2007, Minnesota Power made a second 25-year wind power purchase agreement
   2007      Contracts/Agreements
                                                with FPL.


                                                In September 2007, Minnesota Power's site permit application got approval from the
   2007      Others                             Minnesota Public Utilities Commission and started construction on Taconite Ridge wind
                                                farm, near Virginia, Minnesota.


                                                On 1st January 2006, the Taconite Harbor was directed to non regulated power
   2006      Others
                                                generation as per the resource plan of the company.


                                                In December 2006, the Development of Regional Impact (DRI) was approved for
   2006      Others
                                                Ormond Crossings by the city of Ormond Beach.


                                                In December 2006, Minnesota Power started purchasing all the energy generated from
   2006      Others
                                                the new 50-MW Oliver Wind I Energy Center.


                                                In 2005, the company exit from the Water Services business by selling its waste water
   2005      Others
                                                assets in Georgia.


                                                On April 1, 2005, the Rainy River Energy completed the assignment of its power
   2005      Others
                                                purchase agreement with LSP-Kendall Energy, LLC.


                                                On December 30, 2005 the company sold its telecommunication subsidiary, Eventis
   2005      Others
                                                Telecom.


                                      
				
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