Bloomberg News

E.ON to Book 3 Billion-Euro Impairment Charge for 2011

December 12, 2011

Dec. 12 (Bloomberg) -- EON AG, Germany’s largest utility, said it will book an impairment charge of about 3 billion euros ($3.95 billion) this year, mainly because of lower long-term prices and “regulatory intervention” in Italy and Spain.

The charge will reduce net income for 2011 and will have no impact on operating profit, the Dusseldorf, Germany-based company said in a DGAP newswire statement today.

The impairments deriving from Italy and Spain amount to 2.1 billion euros, EON said. The company also identified charges in Hungary and Slovakia as well as the “Benelux” region, it said.

EON said last month it planned to make job cuts in the “upper end” of the 9,000 to 11,000 range announced in August as it seeks to lower costs after the country’s nuclear withdrawal. The disaster at Japan’s Fukushima Dai-Ichi atomic plant in March fueled anti-nuclear sentiment in Germany, spurring the government to shut all reactors by 2022.

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--Editor: Ben Livesey

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