EON sticks to targets despite sharp drop in Q2 profits

13th August 2014, Comments 0 comments

E.ON, Germany's biggest power supplier, held to its full-year forecasts on Wednesday despite a slump in profits in the second quarter and first half.

"Our half-year earnings were in line with our forecast, considering the difficult situation. So on balance E.ON performed rather well in a difficult environment," said chief executive Johannes Teyssen.

Teyssen affirmed the group's full-year forecast for underlying or operating profit of 8.0-8.6 billion euros ($10.7-11.5 billion) and net profit of 1.5-1.9 billion euros.

In the period from April to June, E.ON's bottom-line net profit plunged to just 59 million euros from 909 million euros a year earlier.

Taking the first half, net profit tumbled 73 percent to 821 million euros.

First-half operating profit was down 12 percent at 5.01 billion euros and sales were down 13 percent at 56.119 billion euros.

The drop in underlying earings was "almost entirely attributable to changes in our portfolio and adverse currency-translation effects in numerous European markets and in Russia," chief executive Teyssen said.

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© 2014 AFP

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