E.ON Posts 2014 Net Loss

swung to a loss in 2014 driven by total write-downs of EUR5.41 billion. E.ON posted a net loss of EUR3.2 billion ($3.4 billion) in the year, versus a year-ago profit of EUR2.1 billion. Analysts were estimating a net loss of EUR3.3 billion. Its underlying profit declined 24% to EUR1.6 billion from EUR2.1 billion, while earnings before interest, taxes, depreciation and amortization slipped 9% to EUR8.3 billion from EUR9.2 billion. Chief Financial Officer Klaus Schäfer said, "Considering the continued difficult market environment in many countries, we're generally satisfied with our 2014 results, particularly since we achieved lasting cost reductions across our business and made a number of successful disposals. Our operating cash flow remained stable at a high level. But it's also true that extremely low oil prices, adverse changes in currency rates, and a further decline in power prices are having a significant effect on our business. Our forecast for the current year is therefore cautious." For 2015, E.ON projects EBITDA of EUR7 billion to EUR7.6 billion and underlying profit of EUR1.4 billion to EUR1.8 billion. E.ON shares fell 2.60% to close at $14.78 yesterday.