Hawaiian Electric Industries Inc.'s income was up sharply during the fourth quarter of 2007 but not enough to offset a lackluster year.

The parent of Hawaiian Electric Co. and American Savings Bank said it earned $40.6 million, or 49 cents per share, during the three months ending Dec. 31, 2007, which was up from $16.1 million, or 20 cents per share in the same quarter a year earlier.

For the full year, the company netted $84.8 million, or $1.03 per share, which was down 21 percent from 2006's $108 million, or $1.33 per share.

"While 2007 fourth-quarter earnings improved, full-year 2007 earnings were down $23 million, driven primarily by a drop in utility net income," said Constance Lau, HEI's chief executive officer.

"Interim rate increases approved by the Hawai'i Public Utilities Commission in 2007, which took effect mainly in the fourth quarter, helped to improve full-year earnings."

The results were above Wall Street's expectations. Analysts polled by Zacks Investment Research had forecast that the company would earn 32 cents per share during the fourth quarter and 94 cents for the full year.

Shares of HEI dropped 18 cents yesterday to close at $22.14 on the New York Stock Exchange.

Last year, the PUC approved interim rate increases for HECO, Maui Electric Co. and Hawaii Electric Light Co. The rate orders boosted the utilities' fourth-quarter net to $28.2 million from fourth-quarter 2006's $13 million.

The company said consumption — as measured by kilowatthour sales — was down 1.4 percent compared with the year-earlier period, due in part to lower demand by commercial customers.

American Savings' income jumped to $17.2 million during the fourth quarter from the year-earlier's $9.3 million. The company said its noninterest income — which includes checking fees, ATM fees and other bank service fees — increased by $3.3 million during the quarter.

In a related matter, HEI said it will maintain its regular quarterly cash dividend of 31 cents per share. The dividend is payable March 11 to stockholders of record at the close of business on March 3.