E.ON Posts Decline In Core Profit

Germany's E.ON SE

posted a net loss in the first nine months of the year. E.ON swung to a net loss of 14 million euros ($17.5 million) in the period, versus a year-ago profit of EUR2.6 billion. Its underlying after-tax profit fell 24% to EUR1.44 billion versus EUR1.9 billion, versus analysts' estimates of EUR1.43 billion. E.ON's earnings before interest, taxes, depreciation and amortization declined 7% to EUR6.6 billion from EUR7.13 billion, versus estimates of EUR6.39 billion. Its revenue dropped about 9% to EUR81.35 billion from EUR89.33 billion. Johannes Teyssen said: “Our half-year earnings were in line with our forecast and—considering the difficult situation. So on balance E.ON performed rather well in a difficult environment.” Teyssen also emphasized the success of the company's retail business in Germany: “I'm particularly pleased that in the second quarter we again added new residential customers. In the first half of the year E.ON gained a new customer every eight minutes on a net basis.” E.ON said it still projects 2014 EBITDA forecast of EUR8 billion to EUR8.6 billion and underlying profit of EUR1.5 billion to EUR1.9 billion. E.ON shares gained 0.66% to close at $16.83 yesterday.