Markets News

UPDATE 1-E.ON cuts 2020 outlook as coronavirus crisis bites

* Expects 300 mln eur COVID-19 hit in 2020

* Now expects adj EBIT of 3.6-3.8 bln eur in 2020

* Previously forecast 3.9-4.1 bln eur (Adds details on outlook)

FRANKFURT, Aug 12 (Reuters) - E.ON, Germany’s largest energy group, on Wednesday cut its outlook for the current year as the coronavirus crisis hit its networks and retail business in the second quarter.

“We can now see much more clearly than at the end of the first quarter and can look ahead to the second half of the current year with greater confidence,” Chief Executive Johannes Teyssen said.

The group now expects adjusted earnings before interest and tax (EBIT) of 3.6 billion to 3.8 billion euros ($4.2-$4.5 billion), while adjusted net profit is seen at 1.5 billion to 1.7 billion euros.

It had previously forecast adjusted EBIT of 3.9 billion to 4.1 billion euros and adjusted net profit of 1.7 billion to 1.9 billion euros.

COVID-19 is expected to deal a 300 million euro hit to earnings in 2020, provided no further lockdowns are ordered, E.ON said, adding half of that was due to issues of a regulatory nature and could be recovered in the 2022-24 period. ($1 = 0.8538 euros) (Reporting by Christoph Steitz; Editing by Michelle Martin)