Power supplier E.On issues profit warning

E. On SE

Last Updated at 31 Jul 2014, 11:35 ET *Chart shows local time E. On SE intraday chart
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Shares in E.On have fallen 9% after Germany's biggest power generator issued a profits warning for next year.

E.On said its "previous 2013 forecast no longer seems achievable", blaming "substantial economic uncertainties".

The company maintained its forecast for full-year earnings for 2012.

For the three months to the end of September, it reported a net loss of 107m euros ($136m; £85m), compared with a profit of 196m euros in the same period last year.

E.On also said it had been hit by structural changes in the energy market.

The German government decided to phase out nuclear power following the problems at the Fukushima nuclear power plant, which has hit German energy firms.

E.On and RWE have both filed complaints about the decision with Germany's constitutional court.

E.On chief executive Johannes Teyssen said the company faces "huge challenges" and is "exploring whether to close some assets".

One problem cited in the report was that gas-fired generators "have become barely profitable to operate".

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