Frankfurt - German energy giant E. ON AG has become the nation's latest company to scale back its earnings forecast Tuesday, warning of the tough economic times ahead and as a result sending its shares sharply lower.

The group's announcement that slumping energy demand meant it expects 2009 profit to drop by about 10 per cent compared to last year resulted in its shares falling 7.6 per cent in early trading to 18.69 euros (24 dollars).

"The outlook for 2009 is subject to significantly more uncertainty than outlooks of previous years," E. ON said releasing the results.

"One of the main sources of uncertainty is the future course of the global economic crisis and its effects, which at this time are difficult to foresee," the group said.

E. ON said instead of a previously forecast 12.4 billion euros, it now expects 2010 adjusted earnings before interest and taxes of 11 billion euros.

The prospects of more difficult conditions for the company came after it reported that net profit rose by 9 per cent to 5.6 billion euros in 2008.

E. ON has dramatically expanded its business in recent years after a major acquisition drive helping to result in a 26 per cent rise in revenue to 86.8 billion euros last year. (dpa)