E.ON, RWE Poised to Cut Spending as Nuclear Tax Erodes Profits

E.ON AG and RWE AG, two of the worst performers in Germany’s benchmark DAX share index this year, are poised to cut dividends and investment because a proposed tax on nuclear reactors will erode the utilities’ profits.

Germany wants 2.3 billion euros ($3 billion) a year from the nuclear industry from 2011 to trim the budget deficit, the government said in June. That led Dusseldorf-based E.ON to extend its drop this year to 20 percent while RWE, based in Essen, is down 18 percent. HeidelbergCement AG has posted the biggest decline in the 30-member DAX, which is up 6.6 percent.