E.ON records an impairment charge - Nine months earnings up by 9 percent – Sale of US approved

The development of electricity and commodity prices is in some cases leading to significantly lower margins and capacity utilisation. As a result, the expected contributions to EBIT by these markets have deteriorated in the medium to long-term. Consequently, E.ON sees the need to record an impairment charge of around € 1.1 billion on goodwill and around € 1.5 billion on other assets, mainly in connection with the activities in Italy, Spain and France acquired from Enel/Acciona and Endesa.
The impairments reduce the Group’s net income. There is no impact on Adjusted EBIT and adjusted Group net income (assessment basis for dividend payments). The impairments are also not cash effective.

E.ON posts another strong result for Q3

Nevertheless, the positive performance of the E.ON Group continues. In the third quarter Adjusted EBIT rose in the first nine months by 9 percent to € 8.0 billion (prior year: € 7.3 billion). Accordingly E.ON is able to confirm the outlook for 2010 with an increase in Adjusted EBIT between 0 and 3 percent as well as adjusted Group net income at the prior-year level.
These figures are based are based on the provisional, not yet finally reviewed E.ON Group interim statements as of 30 September 2010 and are therefore subject to change.

Sale of the US Power and Gas Business finally approved

Ahead of schedule, the sale of E.ON’s US Power and Gas business makes positive progess. The American Federal Energy Regulatory Commission (FERC) yesterday granted final approval for the sale of E.ON US Midwest to PPL Corporation, Allentown, Pennsylvania (PPL). The transaction is expected to close on 1st November. Both companies in April this year agreed the sale price of US-$ 7.6 billion. The deal surpasses E.ON’s target to realize at least € 10 billion from the divestment of assets by the end of 2010.