E.ON Making Progress with Restructuring, Confirms Forecast
OREANDA-NEWS. May 3, 2012. “Despite a difficult business environment, we have made very good progress in implementing our strategy and reorganizing our company. We moved resolutely forward on our consolidation course; the worst adverse effects are behind us. E.ON 2.0, our efficiency-enhancement program, is making good. The earnings growth at our renewables business and our power generation business in
2011 earnings down, attractive dividend yield
In 2011, E.ON recorded its first-ever decline in earnings. Although E.ON’s sales rose by 22 percent to about €113 billion, its EBITDA of about €9.3 billion was 30 percent below the prior-year figure. The principal reasons for the decline were an €2.5 billion adverse effect relating the immediate shutdown of nuclear power stations in Germany and the nuclear-fuel tax, a roughly €1 billion earnings reduction from the marketing of E.ON’s generation portfolio in Europe, and a roughly €0.7 earnings reduction in the gas wholesale business due to continued margin pressure.
The earnings performance of E.ON’s growth businesses continued to be positive. The Renewables unit grew its EBITDA by 21 percent to around €1.5 billion, mainly because of an increase in installed wind and solar capacity. Earnings in
On the basis of these results, the Board of Management and Supervisory Board have recommended to the Annual Shareholders Meeting, being held today in
Restructuring moving forward
E.ON moved resolutely forward in 2011 on the course to transform itself from a primarily European energy utility into an increasingly global, specialized provider of energy solutions.
As part of its refocusing effort in
As planned, E.ON is also increasing its activities in growth markets outside
In addition, E.ON has laid the groundwork for lasting efficiency enhancements. In mid-January, it reached an agreement with trade unions ver.di and IGBCE on a collective-bargaining contract for the implementation of E.ON
Transformation into SE proposed
The planned transformation of E.ON AG into a European Company (SE) is a reflection of the increasing internationalization of E.ON’s workforce, customers, and shareholders. The Board of Management and Supervisory Board have therefore proposed that shareholders vote on the transformation, new Articles of Association, and the six shareholder representatives for the SE Supervisory Board at today’s Annual Shareholders Meeting. E.ON has reached a mutually acceptable agreement with E.ON companies and work councils in
Forecast confirmed
For the first quarter of 2012, the E.ON Group expects its EBITDA to be around €3.8 billion and underlying net income to be around €1.7 billion.
From today’s perspective, E.ON expects full-year 2012 EBITDA to be between €9.6 and €10.2 billion and full-year underlying net income to be between€2.3 and €2.7 billion. E.ON continues to plan to pay a dividend of €1.10 per share for the 2012 financial year.
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