<p>The Dusseldorf-based company added that, at E3.1 billion, the net income attributable to its shareholders was 50% above the high prior-year figure of E2 billion. E.ON's adjusted net income was also up 33% in Q1 2007 to nearly E2 million.<br /><br />E.ON revealed that its subsidiaries outside of the company's domestic market had made a significant contribution to earnings. E.ON performed particularly well in the UK, where adjusted earnings before interest and tax (EBIT) came in at E436 million, a figure which far surpassed the prior-year figure of E43 million.<br /><br />E.ON commented that this was primarily due to lower gas procurement costs, which had been substantially higher in the prior-year quarter because of a gas supply bottleneck and unseasonably cold weather. <br /><br />E.ON's gas activities were also successful in Q1 2007, and the pan-European gas division's adjusted EBIT rose 18% to E1.1 billion. The company said that its international business is becoming an increasingly important earnings driver, and added that new supply contracts were concluded in Q1 2007 with large customers in Denmark, France and Italy. <br /><br />Nevertheless, E.ON said that Nordic's adjusted EBIT fell by 4% to E287 million, mainly due to lower spot electricity prices, and that adjusted EBIT at US Midwest fell 17% to E93 million, due to currency effects and lower gas margins. <br /><br />Wulf Bernotat, E.ON CEO, said: It's now clear how important it was for us to focus systematically on growth in Europe. E.ON achieved its first-quarter earnings improvement predominantly outside Germany. <br /><br />In our home market, by contrast, we're increasingly experiencing the adverse effects of Germany's energy-policy and regulatory environment. We'll meet this challenge by extending our position in Europe and intensifying our efforts to increase efficiency, Mr Bernotat added.</p>
