German utility RWE AG (DE:RWE) +1.90% on Tuesday reported a 45% drop in 2011 net profit, citing difficult economic conditions, and a negative impact on results of over 1 billion euros ($1.32 billion) owing to the government’s nuclear energy decisions.
For 2011, net profit fell to €1.81 billion, compared to €3.31 billion in the year-ago period. Revenue fell 3.1% to €51.69 billion.
A survey of analysts polled by Dow Jones Newswire had forecast net profit of €2.11 billion on sales of €52.65 billion. RWE declared a dividend of €2 per share. “We have introduced the necessary measures to get us through the trough quickly,” said RWE Chef Executive Officer Jürgen Grossmann about the challenging years ahead.
He said some measures were already improving the earnings situation, which should stabilize this year. He said the company is confident of maintaining the earnings level of 2011 earnings, a trend that will persist in 2013. For 2013 and 2014, the company has set itself new cost reduction and efficiency enhancement targets worth €1 billion, three-fourths of which will be achieved in 2013.