First quarter earnings at Hawaiian Electric Industries tumbled 40 percent, reflecting the weak economy and increased conservation by electricity customers.

The company said its net income dropped to $20.4 million, or 23 cents per share, during the three months ending March 31, down from $34 million, or 41 cents per share, in the year-earlier period.

Analysts polled by Thomson Reuters tracking company First Call had been forecasting earnings of 23 cents per share for the quarter.

Shares of HEI rose 51 cents yesterday to close at $16.06 on the New York Stock Exchange yesterday.

"As expected, first quarter earnings were lower, reflecting the impact of the global financial and economic crisis on Hawai'i, which lowered electric sales and resulted in a higher provision for loan losses at the bank," said Constance Lau, HEI's CEO.

"In addition, cooler, less humid weather, together with higher expected utility operating and maintenance costs, reduced earnings quarter-over-quarter."

HEI said income from its utility subsidiary drop- ped to $14.1 million from the first quarter 2008's $24.6 million, reflecting a 7.4 percent drop in kilowatthour sales and higher operations and maintenance costs.

"About two-thirds of the decline in sales is attributable to cooler, less humid weather and one less day of sales due to the leap year day in 2008," Lau said.

"The soft economy and overall ongoing customer conservation account for the remainder of the first quarter sales decline."

The company's American Savings Bank unit recorded a 25 percent income drop. That unit earned $10.9 million during the first quarter, which was down from the year-earlier's $14.6 million.

The bank said it recorded an $8.3 million provision for loan losses during the quarter, which was up from $6.3 million in the year-earlier period. Much of the provision was due to a single commercial loan, which was placed on nonperforming status.

The financial disclosures come as HEI's board voted to maintain the company's 31 cents per share quarterly dividend. The dividend is payable June 10 to shareholders of record on May 21.