Decline in sales and earnings performance
Sales in the water segment decreased year-on-year by 2% to Euro 102 million. Of segment sales, 52% related to the MVV Energie AG parent company and 48% to our municipal utility shareholdings in Kiel, Offenbach and Solingen. The Kiel subgroup is the shareholding reporting the highest sales in the water segment. Energieversorgung Offenbach AG (EVO) reduced its drinking water prices as of 1 July 2007, thus enabling its customers to benefit from the efficiency enhancements achieved. The sales of the water segment made up around 4% of total sales at the MVV Energie Group.
The earnings before interest, taxes, depreciation and amortisation (EBITDA) of the water segment dropped from Euro 30 million to Euro 20 million. Operating earnings before interest and taxes (EBIT) fell year-on-year by
Euro 9 million to Euro 10 million. This decline was mainly due to increased restructuring costs at the MVV Energie AG parent company for the Mannheim distribution grid and higher maintenance expenses at the Kiel subgroup for accompanying development measures in redevelopment areas. Moreover, earnings at the Offenbach subgroup were affected by price reductions and the fact that, unlike in the previous year, no income was posted from the release of leasing provisions.
Operating earnings before interest and taxes (EBIT) accounted for 4% of the sustainable consolidated EBIT before IAS 39 of the MVV Energie Group for 2007/ 08.
| © MVV Energie AG, Mannheim |