Germany's EON profits down, 2011 outlook gloomy

9th March 2011, Comments 0 comments

German power company EON said Wednesday that its 2010 net profit fell 30 percent to 5.85 billion euros ($8.13 billion) and issued a downbeat outlook for this year.

EON said the poor result was due in part to a comparison with exceptional 2009 results that had been boosted by major asset sales.

Net profit adjusted for exceptional items, which EON uses for forecasts and dividend payments, declined by a more modest 4.0 percent to 4.9 billion euros, it said in a statement.

Net profit was forecast to fall further this year to 3.3-4.0 billion euros, EON said, owing to a new German tax on nuclear fuel and weaker sales of electricity and gas.

Sales in 2010 gained 16 percent to 92.9 billion euros, the group said.

It plans to pay a dividend of 1.50 euros for the 2010 exercise but promised only "at least 1.30 euros" pour share this year.

© 2011 AFP

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