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EON says loss widens in Q3, but confirms 2013 targets

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(Globalpost/GlobalPost)

EON, Germany's biggest power supplier, said on Wednesday that sales fell and losses widenend in the third quarter and full-year profits would come at the lower end of its target range.

EON said in its annual report that it sustained a net loss of 440 million euros ($591 million) in the period from July to September, compared with a loss of 114 million euros a year earlier.

Revenues declined by 12.5 percent to 24.694 billion euros.

Taking the first nine months, net profit declined by 2.9 percent to 2.919 billion euros and revenues dropped by 4.6 percent to 89.337 billion euros.

"After the first nine months of 2013, E.ON's business performance continues to be in line with its expectations," the group said.

"EON remains on course in difficult environment," it said.

Looking ahead, "our forecast for full-year 2013 earnings continues to be significantly influenced by the difficult business environment in the energy industry," EON said.

"As a result, we expect our full-year 2013 operating profit to be at the lower end of the forecast range of 9.2-9.8 billion euros and can therefore narrow this range to 9.2-9.3 billion euros," it said.

"This forecast factors in the loss of earnings streams through asset sales under our divestment programme."

So-called "underlying" net profit, which strips out book gains and restructuring costs, was projected to come out at 2.2-2.4 billion euros, it added.

In the nine-months to September, underlying net profit amounted to 1.907 billion euros.

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http://www.globalpost.com/dispatch/news/afp/131113/eon-says-loss-widens-q3-confirms-2013-targets