In a keenly competitive environment, E.ON's results for the first nine months of 2008 surpassed the high level of the prior-year period. E.ON increased sales by 22 percent, from €49.4 billion to €60.5 billion, in part due to newly acquired operations in Spain, Italy, and Russia. The company's global renewables business and expanded production at its natural gas business were also positive factors.

E.ON's adjusted EBIT rose by about 8 percent year on year to €7.7 billion. Central Europe's adjusted EBIT increased by 5 percent to €3.7 billion primarily due to higher gross margins. This positive effect more than offset the adverse effects of the shutdowns at Krümmel and Brunsbüttel nuclear power stations, lower electricity network fees in Germany, and the voluntary agreement with Germany's Federal Cartel Office to reduce and delay the passthrough of higher natural gas procurement costs to customers.

Pan-European Gas's adjusted EBIT increased slightly to about €2 billion, benefiting mainly from higher production and earnings in the upstream business. In the midstream business, higher earnings from an increase in deliveries to industrial customers, and customers outside Germany were mostly offset by rising gas procurement costs. In addition, continued competitive pressure on sales prices also had a impact.

U.K.'s adjusted EBIT declined by 25 percent, or just under €250 million, to about €750 million. The key negative factors were currency effects and significantly lower retail margins. Nordic's adjusted EBIT climbed by 10 percent to more than €650 million, while U.S. Midwest's decreased by 7 percent to roughly €270 million due to the Euro's strength against the Dollar.

The new Energy Trading market unit recorded an adjusted EBIT of more than €400 million. E.ON continues to disclose its other new market units-Italy, Spain, Russia, and Climate & Renewables-in its Corporate Center/New Markets reporting segment.

E.ON's adjusted net income increased by 6 percent to €4.5 billion, mainly reflecting the company's positive adjusted EBIT performance. E.ON's economic investments of nearly €19 billion-almost four times the year-earlier figure-went towards acquisitions, wind farm projects, power plants, power and gas networks, and the expansion of natural gas production.

E.ON continues to stand by its earnings targets for 2008 and expects the group's full-year adjusted EBIT and adjusted net income to surpass the respective prior-year figures by 5 to 10 percent.

E.ON CEO Wulf H. Bernotat said: "The first nine months of 2008 clearly demonstrate that we've set the right course for making E.ON even more international, even more focused, and even more profitable. This will enable us to continue our growth strategy, even in the current financial crisis. To lay the foundation for future earnings increases, we launched improvement programs long before, and independently of, the current financial crisis. The programs will improve our organizational structures and business processes with the aim of making E.ON even stronger, more agile, and more competitive."

Contacts

Luisa Di Vita
E.ON Italia
Luisa.DiVita@eon.com
T. +39.06.85.203.403

Raffaella Perugini
E.ON Italia
raffaella.perugini@eon.com
T +39 06 85203-435