German power giant E.ON says profit off by 7.0 percent

11th May 2010, Comments 0 comments

E.ON, the biggest German power company, on Tuesday reported a 7.0 percent drop in first-quarter profit to 2.3 billion euros (2.9 billion dollars) and maintained its modest full-year targets.

The drop was in large part the result of devalued assets stemming from the planned sale of E.ON's US energy unit PPL, a statement said.

Other restructuring costs and divestments contributed to the decline as well, it added.

As already announced, E.ON's core first-quarter profit gained 20 percent to 3.7 billion euros owing to strong performances in Germany and Britain, and higher margins in the group's energy trading activities.

Sales were a slight 1.1 percent higher at 26.2 billion euros, the company said.

For all of 2010, E.ON remained "cautiously optimistic" and maintained a forecast for core earnings to be stable or gain up to three percent, and a net profit comparable to the 2009 level of 5.33 billion euros.

© 2010 AFP

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