NiSource Inc. -- NIPSCO's parent company -- had a strong fourth quarter in 2008, but it did experience lower profits for the entire year.

For the three months ended Dec. 31, net income was $162 million, or 59 cents per share, up from $67 million, or 24 cents per share, for the fourth quarter of 2007. For the year, net income was $79 million, compared to $321.4 million in 2007.

Its adjusted profit, which counts income from discontinued operations, was $369.8 million, or $1.35 per share.

NiSource shares rose 75 cents, or 8 percent, to $10.50 in Wednesday afternoon trading.

NiSource President and CEO Robert C. Skaggs Jr. noted that the company delivered 2008 earnings within the company's guidance range of $1.25 to $1.35 per share while executing an aggressive array of initiatives designed to enhance long-term shareholder value.

Skaggs emphasized that NiSource's management team and Board of Directors have taken steps to address the ongoing economic downturn and challenging conditions that have persisted in the financial markets.

Skaggs said that NiSource's net operating earnings for 2009 are expected to fall within a range of $1.00 to $1.10 per share. Major factors affecting the company's outlook include increased pension and interest expenses, as well as the impact of the economic downturn.

Skaggs noted the most significant impact on NiSource's near-term earnings outlook relates to an increase in pension expense of about $100 million, or 24 cents per share.