DGAP-News: E.ON AG: E.ON making progress with restructuring, confirms forecast
(firmenpresse) - DGAP-News: E.ON AG / Key word(s): AGM/EGM/Merger
E.ON AG: E.ON making progress with restructuring, confirms forecast
03.05.2012 / 10:15
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E.ON making progress with restructuring, confirms forecast
- Trough reached in 2011, positive forecast confirmed
- Dividend proposal of EUR1 per share ensures attractive dividend yield
- Transformation into European Company (SE) recommended
- Implementation of strategy and efficiency enhancement making good
progress
'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 Russia demonstrate that we entered the right growth businesses.
We're also moving swiftly forward in establishing operations outside
Europe, as demonstrated by our joint venture in Brazil. In addition, our
agreement with Statoil helps relieve the situation in our wholesale gas
business, which remains difficult. There are therefore a number of positive
signals that make me confident that we can post an earnings increase in
2012, an increase that will continue in subsequent years.' This was E.ON
CEO Johannes Teyssen's analysis of the company's current situation. He made
the remarks today at E.ON's 2012 Annual Shareholders Meeting in Essen,
Germany. Teyssen thus affirmed E.ON's current strat-egy and its full-year
2012 forecast.
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 EUR113 billion, its EBITDA of about
EUR9.3 billion was 30 percent below the prior-year figure. The principal
reasons for the decline were an EUR2.5 billion adverse effect relating the
immediate shutdown of nuclear power stations in Germany and the
nuclear-fuel tax, a roughly EUR1 billion earnings reduction from the
marketing of E.ON's generation portfolio in Europe, and a roughly EUR0.7
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
EUR1.5 billion, mainly because of an increase in installed wind and solar
capacity. Earnings in Russia improved by about 35 percent to about EUR0.6
billion, owing primarily to an increase in generating capacity and wider
power margins. Upstream gas earnings rose to roughly EUR0.8 billion due to
positive price and volume effects. In addition, E.ON's ongoing
efficiency-enhancement programs delivered lasting earnings effects totaling
EUR0.4 billion in 2011.
On the basis of these results, the Board of Management and Supervisory
Board have recommended to the Annual Shareholders Meeting, being held today
in Essen, the payment of a dividend of EUR1 per share. With this dividend,
E.ON stock would continue to have one of the highest dividend yields among
DAX companies.
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 Europe, E.ON will accelerate the
expansion of its renewables capacity. It has earmarked more than EUR2
billion for the construction of three large offshore wind farms in the
North Sea and Baltic Sea. One of these is Amrumbank West, a deepwater wind
farm in Germany that will enter service in 2015 and produce enough
electricity to power about 300,000 households. Going forward, E.ON intends
to commission a new offshore wind farm in Europe every 18 months.
As planned, E.ON is also increasing its activities in growth markets
outside Europe. Alongside its successful businesses in North America (wind
farms) and Russia (large-scale conventional power stations), E.ON will now
enter Brazil as its next growth market. Through a joint venture with
Brazil's MPX, E.ON plans to build conventional power stations and
renewables facilities with a total capacity of roughly 11 gigawatts. E.ON
is also conducting, promising talks with partners in Turkey and India about
opportunities for cooperation.
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 2.0 in Germany. The contract establishes mechanisms and a framework
for the staff reductions that are necessary at E.ON. The agreement pays the
way for E.ON to implement E.ON 2.0 as planned and to achieve its goal of
reducing controllable costs to EUR9.5 billion annually by 2015. This will
give E.ON flexibility for its investments in the future and thus also for
long-term employment opportunities.
Transformation into SE proposed
The planned transformation of E.ON AG into a European Company (SE) is a
reflec-tion of the increasing internationalization of E.ON's workforce,
customers, and share-holders. 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 Share-holders Meeting. E.ON has reached
a mutually acceptable agreement with E.ON com-panies and work councils in
Germany on key issues. Over the next six months, the de-tails will be
negotiated with employee representatives from all European countries. E.ON
expects the transformation to take effect, and for E.ON SE to be fully
func-tional, at the end of this year. At that time, the six employee
representatives will be added to the SE Supervisory Board. Until then, the
current Supervisory Board will continue to carry out its duties.
Forecast confirmed
For the first quarter of 2012, the E.ON Group expects its EBITDA to be
around EUR3.8 billion and underlying net income to be around EUR1.7
billion.
From today's perspective, E.ON expects full-year 2012 EBITDA to be between
EUR9.6 and EUR10.2 billion and full-year underlying net income to be
betweenEUR2.3 and EUR2.7 bil-lion. E.ON continues to plan to pay a dividend
of EUR1.10 per share for the 2012 finan-cial year.
For 2013, E.ON expects EBITDA of EUR11.6 to EUR12.3 billion and underlying
net income of EUR3.2 to EUR3.7 billion. It continues to plan to pay a
dividend of at least EUR1.10 per share for the 2013 financial year.
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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 mate-rial differences between
the actual future results, financial situation, development or perform-ance
of the company and the estimates given here. E.ON AG does not intend, and
does not as-sume any liability whatsoever, to update these forward-looking
statements or to conform them to future events or developments
End of Corporate News
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Language: English
Company: E.ON AG
E.ON-Platz 1
40479 Düsseldorf
Germany
Phone: +49 (0)211 4579-0
Fax: +49 (0)211 45 79-5 01
E-mail: investorrelations(at)eon.com
Internet: www.eon.com
ISIN: DE000ENAG999
WKN: ENAG99
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX; Mailand
End of News DGAP News-Service
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