RWE Q3 Net Income Falls 48 Percent

GEORGE FREY

FRANKFURT (AP) — German utility RWE AG said Thursday that net income slid 48 percent in the third quarter as demand for gas and electricity fell in the economic downturn.

RWE, based in Essen, reported euro569 million ($854 million) in net income, down from euro1.1 billion in the July-September period of 2008.

Revenue for the period fell to euro9.1 billion from euro9.5 billion.

For the first nine months, however, RWE saw a 26 percent increase in income attributable to shareholders, partly on gains from a divestment. The company said its power supply and trading activities also experienced a positive trend.

RWE said it earned euro2.8 billion in the January-September period, up from euro2.2 billion in the year-ago quarter as some units, such as Npower in the U.K., were hurt by extreme price and cost pressures. Revenue fell 2 percent to euro33.8 billion.

The sale of a stake in its American Water unit contributed $750 million to the company's results and removed a significant amount of debt from the balance sheet. RWE still holds a 23.5 percent stake in that company.