E.ON SE

Earnings Release • Nov 14, 2002

News Details

Ad-hoc | 14 November 2002 12:52

E.ON AG english

E.ON AG, Interim Report January 1 – September 30, 2002 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– E.ON internal operating profit up 36 percent in first nine months of 2002 2.4 billion euros impairment charge to Powergen goodwill In the first nine months of 2002, the E.ON Group’s internal operating profit climbed 36 percent to 3,178 million euros compared with 2,341 million euros in the prior-year period. The increase resulted in particular from the improvement in E.ON Energie’s internal operating profit, which was up 52 percent to 2,286 million euros from 1,506 million euros in the year-earlier span. This high rate of increase, due in part to the effects of first-time consolidations, will decline considerably for full year 2002. However, E.ON expects internal operating profit for the 2002 financial year to again markedly exceed the previous year’s high figure. In view of the significant changes in the market environment of E.ON’s Powergen subsidiary, E.ON must, under U.S. GAAP, record an impairment charge of 2.4 billion euros on the goodwill stemming from the Powergen acquisition. This one- off effect is recognized in other nonoperating earnings, but does not affect E.ON’s cash flow. Despite the impairment charge, E.ON’s nine-month net income after taxes and minority interest in the amount of 2,910 million euros was 100 percent higher than the prior-year figure of 1,454 million euros. The increase reflects the positive effects of asset sales. These were partially offset by the impairment charge on the Powergen goodwill and the write-off already recognized at June 30, 2002, on E.ON’s shares in HypoVereinsbank. If the capital markets remain at their current depressed level, U.S. accounting standards would, from today’s perspective, require further valuation adjustments in the fourth quarter to securities held by E.ON, which would push the E.ON Group’s net income for 2002 below the figure for the previous year. end of ad-hoc-announcement (c)DGAP 14.11.2002 ——————————————————————————– WKN: 761440; ISIN: DE0007614406; Index: DAX, EURO STOXX 50 Listed: Amtlicher Markt in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, München und Stuttgart; Eurex; Swiss Exchange; New York 141252 Nov 02