The Laclede Group, Inc. (Form: 8-K)

The Laclede Group Announces Improved
Third Quarter and Fiscal Year-to-Date Earnings and Declares Dividend

ST. LOUIS, MO, July 28, 2005 — The Laclede Group (NYSE: LG) today announced improved earnings for the third quarter and for the first nine months of its fiscal year 2005 over those of the same periods last year. Additionally, its Board of Directors declared a quarterly dividend of 34-1/2 cents per share on its common stock, payable October 3, 2005, to shareholders of record on September 12, 2005.

Consolidated net income for the quarter ended June 30, 2005, was $6.1 million this fiscal year, or $2.4 million higher than for the same period last fiscal year. On an earnings-per-share basis, third quarter earnings for fiscal 2005 were $.29 per share, compared to $.19 per share for the same period in fiscal 2004.

The increase in The Laclede Group’s consolidated quarterly earnings resulted from improved performance at Laclede Gas Company, as well as SM&P Utility Resources, Inc. Laclede Gas Company is Missouri’s largest natural gas distribution utility and the core subsidiary of The Laclede Group. SM&P is an underground facility locating and marking company, one of The Laclede Group’s principal unregulated subsidiaries.

Laclede Gas’ quarterly earnings improved over those for the third quarter of fiscal 2004 due in part to its ability to recover certain mandated distribution costs through the Infrastructure System Replacement Surcharge, lower operating costs, and the receipt of the second of three expected distributions associated with its interest as a policyholder in the sale of a mutual insurance company. SM&P’s third quarter improvement in fiscal 2005 over the same period last fiscal year was due primarily to attainment of substantial additional business in both new and existing markets. Group’s other major non-regulated subsidiary, Laclede Energy Resources (LER), earned slightly less during this fiscal year’s third quarter than it did in the same period last fiscal year. LER offers natural gas commodity services to customers within as well as outside of the St. Louis area.

The Laclede Group’s consolidated net income for the nine-month period ended June 30, 2005, was $45.2 million, or $3.3 million more than the same period last fiscal year. However, earnings on a per share basis were $2.14, compared to $2.16 for the same period last year, due to the increase in shares of common stock outstanding resulting largely from the public offering and sale of common stock in May 2004. The fiscal year-to-date increase in consolidated net income is primarily due to improved results at SM&P, as well as at LER. Fiscal year-to-date earnings for Laclede Gas were down compared to the same period last year due to higher operating costs, lower sales, and a smaller policyholder distribution from the sale of the mutual insurance company referenced above.

Laclede Gas Company, which contributes the majority of The Laclede Group’s consolidated earnings, has seasonal earnings that are typically concentrated in the colder months of the year. While SM&P, LER and other non-utility operations provide some offset to this seasonal pattern, The Laclede Group historically has experienced losses during its fourth quarter, July through September.

In addition, Laclede Gas Company declared a quarterly dividend of 31-1/4 cents per share on Preferred Stock, Series B, and a quarterly dividend of 28-1/2 cents per share on Preferred Stock, Series C, payable September 30, 2005 to shareholders of record September 12, 2005.

Note: This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company’s control, including weather conditions, governmental and regulatory policy and action, the competitive environment and economic factors. For a more complete description of these uncertainties and risk factors, see the Company’s Form 10-Q for the quarter ended March 31, 2005, filed with the Securities and Exchange Commission.


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2005		2004		2005		2004
OPERATING REVENUES
Regulated
Gas distribution	$	162,371	$	125,870	$	888,620	$	784,118
Non-Regulated
Services		45,118		34,973		96,910		69,771
Gas marketing		103,008		80,475		337,794		192,938
Other		830		3,742		7,043		5,825

Total operating revenues		311,327		245,060		1,330,367		1,052,652

OPERATING EXPENSES
Regulated
Natural and propane gas		102,995		68,855		630,647		532,414
Other operation expenses		27,896		28,411		93,496		90,702
Maintenance		5,160		4,599		14,054		13,669
Depreciation and amortization		5,947		5,746		16,919		17,115
Taxes, other than income taxes		13,198		12,018		55,498		51,747

Total regulated operating expenses		155,196		119,629		810,614		705,647
Non-Regulated
Services		38,195		29,619		91,370		69,468
Gas marketing		101,454		78,567		330,945		188,668
Other		986		3,690		7,003		5,461

Total operating expenses		295,831		231,505		1,239,932		969,244

Operating Income		15,496		13,555		90,435		83,408

Other Income and (Income Deductions) – Net		822		66		2,302		3,456

Interest Charges:
Interest on long-term debt		5,642		6,207		17,193		15,836
Interest on long-term debt to unconsolidated affiliate trust		894		894		2,680		2,680
Other interest charges		883		565		3,171		2,649

Total interest charges		7,419		7,666		23,044		21,165

Income Before Income Taxes		8,899		5,955		69,693		65,699
Income Tax Expense		2,788		2,192		24,492		23,774

Net Income		6,111		3,763		45,201		41,925
Dividends on Redeemable Preferred Stock – Laclede Gas		13		16		43		47

Net Income Applicable to Common Stock	$	6,098	$	3,747	$	45,158	$	41,878

Average Number of Common Shares Outstanding		21,103		19,863		21,060		19,381
Basic Earnings Per Share of Common Stock	$	.29	$	.19	$	2.14	$	2.16
Diluted Earnings Per Share of Common Stock	$	.29	$	.19	$	2.14	$	2.16

Certain prior-period amounts have been reclassified to conform to current-year presentation.


Missouri	1-16681	74-2976504
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

720 Olive Street, St. Louis, Missouri		63101
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


Missouri	1-1822	43-0368139
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

720 Olive Street, St. Louis, Missouri		63101
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	The Laclede Group, Inc.

July 28, 2005	By:	Douglas H. Yaeger

		Name: Douglas H. Yaeger
		Title: Chairman of the Board, President and Chief Executive Officer


	Laclede Gas Company

July 28, 2005	By:	Douglas H. Yaeger

		Name: Douglas H. Yaeger
		Title: Chairman of the Board, President and Chief Executive Officer


Exhibit No.		Description

99.1		July 28, 2005 Press Release


Date of Report (Date of Earliest Event Reported):		July 28, 2005


Registrant’s telephone number, including area code:		314-342-0500