BUSINESS

E.ON to cut up 11,000 jobs

Utilities company E.ON announced on Wednesday that it “faces major challenges” in the wake of the German nuclear retreat and weak power and gas prices, reported its first ever quarterly loss, signaled a lower dividend and said it would cut up to 11,000 jobs, Wall Street Journal informs. The company said it swung to a net loss in second quarter of the year of EUR 1.58 billion compared with a profit of EUR 1.63 billion a year earlier. Revenue came in at EUR 25.2 billion, up around 35 per cent from EUR 18.62 billion. Germany’s largest utility by market value also lowered its 2011 and medium-term profit outlooks in response to a considerably worsened business climate. “We’re not immune to negative changes in our markets, and especially in the political and regulatory environment,” said Chief Executive Johannes Teyssen. “We simply must make use of the internal flexibility we have,” he added. The company said it now expects 2011 full-year adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, of between EUR 9.1 billion and EUR 9.8 billion, from the previous range of EUR 10.7 billion-EUR 11.4 billion.

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