Germany's Fourth Biggest Utility aims to cull number of subsidiaries
"This...will be reached through mergers, closures and sales as well as through integration in partnerships," Germany's fourth-biggest utility said in a statement, adding a significant part of this would take place this year.
New Chief Executive Utz Claassen, who took over from Gerhard Goll in May, said earlier this month he would step up a savings programme already under way and sharpen the company's focus on energy by selling businesses in other areas.
EnBW, which many investors criticise for having diversified into businesses as diverse as shoes and car parking management while rivals like E.ON ((EONG.DE)) and RWE ((RWEG.DE)) honed in on energy, has said it can't rule out an operating loss in 2003.
"It is right and important that we now follow up this announcement with the appropriate action," Claassen said.
He added that the remaining parts of shoe and services business Salamander -- including profit-making parking lot operator Apocoa Parking -- would be quickly sold, but did not give further details.
Loss-making units that cannot be restructured will be sold or dissolved.
"Investors and employees must know that strengths available in the core business will not in future be diluted by almost 100 loss makers," said Claassen, who aims to save a billion euros by 2006.
Related News

BC Hydro launches program to help coronavirus-affected customers with their bills
VANCOUVER - BC Hydro is implementing a program to help people pay their bills if they’re affected by the novel coronavirus.
The Crown corporation says British Columbians are facing a variety of financial pressures related to the COVID-19 pandemic, as some workplaces close or reduce staffing levels.
BC Hydro said it also expects increased power usage as more people stay home amid health officials’ requests that people take social distancing measures.
Under the new program, customers will be able to defer bill payments or arrange a payment plan with no penalty.
BC Hydro says some customers could also be eligible…