E.On lifts annual profit forecast

E.On says earnings are stable despite the economic crisis

The world's largest power firm, E.On, has raised its annual profit forecast.

The German company, which owns Powergen in the UK, said its full-year net income is expected to fall by 3-5% and not 5-10% as previously predicted.

E.On said one of the factors behind the revision was the success of its cost-cutting programme.

However, E.On's sales fell 2% to 59.3bn euros ($89bn; £53bn) in the first nine months of 2009 - hit by the global slowdown and currency fluctuations.

Adjusted net income for the nine months was 4.5bn euros.

E.On chief executive Wulf Bernotat said: "We posted solid nine-month results in a year that has been characterised by the economic crisis.

"Although it looks like the worst part of the crisis is over, we continue to face significant adverse factors".

On Tuesday, E.On finally agreed to sell its German power grid to Dutch rival Tennet. That was part of a settlement with EU competition regulators, who claimed the firm had too much market power.

The deal also helps E.On to pay down some of its debt stemming from purchases in Spain and Siberia.