Corporate | 10 March 2009 08:12
E.ON AG / Final Results/Forecast
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
----------------------------------------------------------------------
E.ON increases earnings in difficult environment
* 2008 adjusted EBIT up by 7,3 percent to EUR9.9 billion
* Dividend again higher: EUR1.50 per registered share
* 2009 outlook: stable adjusted EBIT,adjusted net income to decline
* Investments of up to EUR30 billion through 2011
E.ON posts significantly higher earnings, demonstrating strength in the
current economic crisis. In a very difficult environment, E.ON increased
its 2008 adjusted EBIT by 7,3 percent to EUR9.9 billion. This result is in
line with the forecast E.ON issued in the spring of 2007 before the
economic crisis began. Sales were up 26 percent to EUR86.8 billion.
Adjusted net income, the earnings figure E.ON uses to determine its
dividend, rose by 9 percent to EUR5.6 billion. Management will propose
raising the dividend to EUR1.50 per registered share, resulting in a payout
ratio of just over 50 percent.
E.ON again significantly increased its investments in 2008. It invested
EUR26.2 billion, more than twice as much as in 2007. About EUR16 billion of
this figure went towards the acquisition of operations under E.ON's
agreement with Enel and Acciona and its agreement with Statkraft. E.ON
hired 13,000 new employees groupwide in 2008, just under 5,000 of them in
Germany. E.ON has 2,700 apprentices in Germany, making it one of the
country's biggest providers of vocational training.
The outlook for 2009 is subject to significantly more uncertainty than
outlooks of previous years. One of the main sources of uncertainty is the
future course of the global economic crisis and its effects, which at this
time are difficult to foresee. In view of this, E.ON currently expects its
2009 adjusted EBIT to match the high prior-year figure. It expects 2009
adjusted net income to decline by around 10 percent relative to the prior
year due to higher interest expenses resulting from the increase in its
debt. E.ON intends to stand by its current dividend payout ratio of 50 to
60 percent.
Based on ongoing performance improvements, E.ON anticipates that its
operating earnings will develop positively. From today's perspective and
based on its current portfolio, E.ON expects to increase adjusted EBIT to
about EUR11 billion.
E.ON had earlier announced EUR63 billion in investments for the period
2007-2010. By 2010, E.ON will have invested EUR60 million of this figure.
For the current planning period (2009-2011), the company's earnings
stability will enable it to largely continue its investment program, which
is the biggest in the energy industry. However, in view of the
significantly more difficult economic environment, E.ON has again reviewed
all projects in the current planning period and reduced the original figure
by about EUR6 billion. After this reduction, E.ON will invest an average of
EUR10 billion in each of the next three years (2009-2011). About one third
of investments will go towards updating and replacing networks and power
plants in Germany and the United Kingdom. Two thirds are earmarked for
growth. Here, the focus will be on expanding the company's generating
capacity in the Netherlands, Belgium, Slovakia, and Russia. With
double-digit growth rates, renewables remain a growth business and one that
E.ON intends to expand and make one of its core businesses. E.ON is one of
the world's leading players in onshore wind power and offshore wind power
in the North Sea and Baltic Sea. E.ON sees future potential for large-scale
solar power plants located in sun-rich regions and is preparing several
such projects.
Along with its ongoing performance enhancements and the prioritization of
its investment projects, E.ON will systematically review its business
portfolio. Depending on the capital-market situation, E.ON intends to
divest at least EUR10 billion of assets by the end of 2010.
Disclaimer:
This press release may contain forward-looking statements based on current
assumptions and forecasts made by E.ON Group management and other
information currently available to E.ON. Various known and unknown risks,
uncertainties and other factors could lead to material differences between
the actual future results, financial situation, development or performance
of the company and the estimates given here. E.ON AG does not intend, and
does not assume any liability whatsoever, to update these forward-looking
statements or to conform them to future events or developments.
Dr. Jens Schreiber
Media Relations
+49-211-4579-544
jens.schreiber@eon.com
10.03.2009 Financial News transmitted by DGAP
----------------------------------------------------------------------
Language: English
Issuer: E.ON AG
E.ON-Platz 1
40479 Düsseldorf
Deutschland
Phone: +49 (0)211 4579-0
Fax: +49 (0)211 45 79-5 01
E-mail: investorrelations@eon.com
Internet: www.eon.com
ISIN: DE000ENAG999
WKN: ENAG99
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Hannover, Düsseldorf, Stuttgart, München, Hamburg;
Terminbörse EUREX; Foreign Exchange(s) Mailand
End of News DGAP News-Service
---------------------------------------------------------------------------