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E.ON, disappointing half-year report: and now restructuring

The German group was particularly affected by the exit from nuclear power. In addition to the cut in growth forecasts, a major restructuring of the workforce is in sight.

E.ON, disappointing half-year report: and now restructuring

Another excellent victim of the nuclear ban following the Fukushima disaster. E.ON, Germany's main energy group, has decided to drastically restructure: staff cuts of up to 11.000 jobs in the medium term, equal to 14% of the workforce. And it also announced that it will lower its 2011 dividend to 1 euro from 1,3.

The group's half-year results are rather disappointing: E.ON recorded an adjusted Ebitda of 4,3 billion, below the forecasts of a Reuters poll, which had predicted 4,692 billion. In the same period the net profit was equal to 900 million euros, against the consensus of 1,155 billion. The group now expects full-year adjusted Ebitda of €9,1-9,8 billion, below the €10,7-11,4 billion previously estimated.

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