German utility firm E.ON Q1 income falls 11 pct despite rise in sales

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BERLIN, May 13 (Xinhua) -- E.ON's adjusted net income fell by 11 percent to 650 million euros (730.2 million U.S. dollars) despite an increase in sales in all business areas (networks, customer solutions, renewables), the German utility company announced on Monday.

The Essen-based company's sales rose by 5 percent to 9.16 billion euros in the first three months of the fiscal year 2019. Nonetheless, compared with the "exceptionally strong prior-year quarter," E.ON's adjusted operating earnings (EBIT) fell by 8 percent to just under 1.2 billion euros during the period.

E.ON experienced a particularly sharp decline in revenues from its customer solutions segment, with adjusted EBIT falling from 392 million to 219 million euros year-on-year.

In the German customer solutions market, adjusted EBIT was down by about 70 million euros, but the utility company noted that this decline was "purely temporary" and had resulted "from the fact that we were not yet able to pass higher grid fees through to our customers".

In contrast, E.ON reported that its customer solutions business in the UK "remained under considerable pressure", with earnings declining by 90 million euros. It cited a new regulatory cap for power prices and "competitive dynamics" in the UK as the primary reasons for the decline.

"Apart from the special case of the United Kingdom, we have shown solid development in our core business. We can therefore clearly confirm our forecast for the 2019 financial year," said E.ON's chief financial officer (CFO) Marc Spieker.

In the renewable energies segment, the company increased its adjusted EBIT from 171 million to 211 million euros, an increase of 23 percent year-on-year.

This increase resulted primarily from an "increase in output due to the commissioning of offshore wind farms in Germany and the United Kingdom" as well as an onshore wind farm in the United States, according to the company.

Looking ahead, the German company is expecting adjusted net income of between 1.4 and 1.6 billion euros by the end of the 2019 fiscal year.

Regarding its planned acquisition of the RWE renewable energy subsidiary Innogy, E.ON said "the planned transaction with RWE is fully on schedule." Enditem

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