Weak demand hits profit
August 13, 2013
Germany's largest power supplier said August 13 its second-quarter net income was 919 million euros ($1.22 billion), down from 1.18 billion euros in the April-June period a year ago. The figures marked a 22 percent fall in net profit.
First-half earnings before interest, tax, depreciation and amortization dropped by 15 percent from the same period last year to 5.7 billion euros, the Düsseldorf-based company announced.
"In particular, E.ON's power generation business in Europe is suffering from low-capacity utilization and low wholesale prices as a result of the continent's economic crisis and interventionist energy policies and regulations," the utility firm said in a statement.
Adapting to a changing market
E.ON added that cost savings through a restructuring program and higher earnings in the renewable and exploration divisions had a positive impact on income, but were more than offset by the absence of profit from divested companies and the negative effects of the current market situation in fossil-fueled power generation.
Despite the problems at hand, CEO Johannes Teufer reaffirmed the company's full-year earnings forecast.
He said it expected 2013 profit before interest and tax to come in at 9.2 billion to 9.8 billion euros. E.ON did not mention any possible one-off effects later in the year.
hg/dr (dpa, AP)