RWE Says 2011 Profit to Fall 30% on German Tax, Power Prices
This article is for subscribers only.
RWE AG, Germany’s second-largest utility, said profit will fall about 30 percent this year because of a tax on its nuclear reactors and “stagnating” power prices. The shares fell the most in 10 months.
Recurrent net income, which it uses to calculate the dividend, will fall from last year’s 3.75 billion euros ($5.17 billion), the Essen-based company said in a statement today. RWE said it plans to sell assets, reduce spending and extend cost cuts to grapple with the slump.