2011 Annual Report - OTCIQ.com

32 Earnings Situation
Net Earnings
In 2011, we recorded a net loss attributable to shareholders
of E.ON AG of -€2.2 billion and corresponding earnings per
share of -€1.16. In the prior year, we recorded net income of
€5.9 billion and earnings per share of €3.07.
Net Earnings
€ in millions 2011 2010
EBITDA1 9,293 13,346
Depreciation and amortization -3,689 -3,752
Impairments (-)/Reversals (+) 2 -166 -140
EBIT1 5,438 9,454
Economic interest expense -1,776 -2,257
Net book gains/losses
Restructuring/cost-management
1,221 2,873
expenses -586 -621
E.ON 2.0 restructuring expenses -801 –
Impairment charges2 -3,004 -2,598
Other non-operating earnings
Income/Loss (-) from continuing
-3,403 2,212
operations before taxes -2,911 9,063
Income taxes 1,036 -1,946
Income/Loss (-) from continuing operations -1,875 7,117
Income/Loss (-) from discontinued
operations, net 14 -836
Net loss/Net income (-) -1,861 6,281
Attributable to shareholders of E.ON AG -2,219 5,853
Attributable to non-controlling interests 358 428
1 Adjusted for extraordinary effects (see Glossary).
2 Impairments differ from the amounts reported in accordance with IFRS due to
impairments on companies accounted for under the equity method and impairments
on other financial assets, and also due to impairments recognized in nonoperating
earnings.
Our economic interest expense improved by €481 million year
on year, mainly because of the reduction in the E.ON Group’s
net debt. The reversal of the adverse interest effect on prepayments
to a fund to support renewables recorded at year-end
2010 was also a positive factor.
Economic Interest Expense
€ in millions
Interest expense shown in Consolidated
2011 2010
Statements of Income
Interest income (-)/expense (+) not
-2,094 -2,303
affecting net income 318 46
Total -1,776 -2,257
Net book gains in 2011 were €1,652 million, or 58 percent,
below the prior-year level. In 2011, book gains were recorded
mainly on the sale of our remaining Gazprom stock, our network
business in the United Kingdom, our gas distribution
network in Sweden, and securities. The figure for 2010 reflects,
in particular, book gains on the sale of Gazprom stock and
on the disposal of power capacity and our ultrahigh-voltage
transmission system (transpower) in line with our commitment
to the European Commission.
Restructuring and cost-management expenditures declined
by €35 million. As in the prior year, some expenditures resulted
from restructuring measures at our regional utilities in Germany
and at the UK and France regional units. The 2011 figure
also includes expenditures relating to the restructuring of
our IT organization.
Expenditures under the E.ON 2.0 program result in particular
from obligations relating to early retirement agreements and
settlements.
In the fourth quarter of 2011, we recorded a total of €3 billion in
impairment charges on assets and goodwill, mainly at generation
businesses. Impairment charges totaling approximately
€1.9 billion were necessary in Spain and Italy due to pessimistic
forecasts for the long-term development of power prices,
regulatory intervention, and reduced utilization of gas-fired