ESSEN, Germany (Thomson Financial) - RWE AG. said first-quarter operating
profit fell 11 percent to 2.5 billion euros on lower profits in its power
trading unit, missing forecasts.
Analysts polled by Thomson Financial News expected operating profit in the
quarter at 2.66 billion.
The German utility said recurrent net income adjusted for one-time effects
was virtually flat at 1.4 billion euros, also missing the 1.44 billion forecast.
Reported net income in the quarter was hit by a 600 million euros write-down
on the value of its American Water unit which it floated in an Initial Public
Offering (IPO) in April. Net income stood at 809 million euros, compared with
1.57 billion a year earlier and significantly below the forecast of 872 million.
Meanwhile, the company confirmed its full-year targets.
It said it still sees reported net income coming in slightly below last
year's level.
RWE said sales are expected to be higher than in 2007, while it sees
operating profits matching last year's level.
frederik.richter@thomsonreuters.com
fr1/rfw
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