German utility E.ON lowers 2013 outlook
CEO Johannes Teyssen said E.ON faces "huge challenges," particularly in its electricity generation business, and added that the company is "exploring whether to close some assets."
He said in a letter to shareholders that one problem is that, as countries switch to more climate-friendly power supplies, gas-fired generators "have become barely profitable to operate." That's in part because overall electricity demand is very low, but also because energy from renewable sources is fed into grids as a priority when demand is higher, he added.
For the first nine months of the year, E.ON said its net earnings rose to €2.73 billion from the previous year's €864 million. Revenue increased to €93.63 billion from €77.51 billion.
For that period, E.ON credited an improvement in its wholesale gas business; the effect last year of costs stemming from Germany's decision to speed up its phaseout of nuclear energy; and new gas-fired generating units in Russia.
E.ON last year announced a plan to cut up to 11,000 jobs from a workforce of some 80,000.
Business Photo Galleriesview all
- 22069Oklahoma medical examiner reports cause of deaths in Grand Lake boat crash
- 17657Oklahoma City Thunder: Amnesty Kendrick Perkins?
- 12691Rockets guard Patrick Beverley bombarded with hateful Tweets after Thunder get eliminated
- 10660Oklahoma State football: Todd Monken thinks Wes Lunt should've stayed in Stillwater
- 10002Oklahoma football: Sooners get pair of commitments
- 9693Report: OSU blocking Wes Lunt from transferring to the SEC, Big 12 and Southern Miss
- 8348OKC Thunder: Thunder trio praise fans before potential departures