E.On profits hurt by financial crisis

<p>E.On has announced its profits have been reduced.</p>

The share price of E.On is up today (August 13th), despite the fact that the energy supplier has announced its profits have been reduced.

A statement from the firm revealed that as sales slipped by around three per cent, its underlying net income dropped 42 per cent to 1.9 billion euros (£1.6 billion) between April and June.

It was suggested by the firm that alternative energy sources would continue to hurt profits in the coming years, while record-low wholesale power prices are also impacting its bottom line.

E.On revealed that the financial crisis in Europe has also had an effect on the health of the company over the course of the last few years.

"The numbers per se are not great but they beat expectations and that's all that matters," a Frankfurt-based trader said.

At 15:27 BST this afternoon, stocks in the energy company were 1.88 per cent higher than at the start of the session.

The firm's stocks were selling for 12.46, with investors satisfied with the company's recent performance despite the drop in profits.

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