May 8 (Reuters) - Atmos Energy ( ATO ) raised its

full-year profit forecast on Wednesday after reporting an

increase in quarterly profit, as the natural gas utility

benefited from a rise in demand for the heating fuel.

The firm said its consolidated net income rose to $432

million, or $2.85 per share, in the three months ended March 31,

from $357.7 million, or $2.48 per share, a year earlier.

Natural gas utility companies see a rise in demand when

service regions experience extreme weather conditions that help

pump up demand for electricity in these regions.

The company also saw added benefits from rising residential

customer growth in its biggest service region, in terms of

operating income, of Central Texas and benefits from rate

adjustments.

Additionally, the cost of purchased gas, one of the main

expenses for the company, mirrored the decline in natural gas

prices, falling to $963.2 million, compared with $1.4 billion in

the year-ago quarter.

The Dallas-based company now sees annual profit between

$6.70 per share and $6.80 per share, up from previously forecast

range of $6.45 to $6.65 apiece.