* Shares down 3.6 percent after Sept. 19 dividend cut plan
* Analysts expect more cost cuts to be announced in Nov
FRANKFURT, Sept 20 Germany's No. 2 utility RWE
AG will give its outlook for 2014 alongside
third-quarter results on Nov. 14, it said on Friday, with
analysts expecting further cost cuts on top of the firm's
decision on Thursday to reduce its dividend.
RWE shares dropped 3.6 percent on Friday, the second-biggest
decline on Germany's blue-chip DAX index, after the
company said late on Thursday that it planned to halve its 2013
dividend to 1 euro per share.
The firm is battling sluggish demand for energy in a
struggling European economy, at a time when Germany is also
embarking on a major shift towards renewable energy.
RWE said on Thursday it would also cut its dividend payout
ratio to 40-50 percent of net profit for the coming years from a
previous target of 50-60 percent, although it stuck with a 2013
earnings forecast unveiled in March.
JP Morgan analysts said RWE was likely to save less than 1.1
billion euros ($1.5 billion) over four years from the dividend
changes, a small amount in the context of the firm's 35 billion
euros of debt.
They expect more cost cuts could be announced in November.
Earlier this week, industry sources said RWE planned to axe
3,000 jobs and freeze pay for three years as part of an
efficiency drive dubbed "Neo".
RWE declined to comment, while unions said on Thursday they
would fight such plans.
The sources said the plans could deliver a further 300
million euros of savings on top of the 500 million ascribed to
Neo in July.
Germany, Europe's largest economy, has seen its energy
sector slide into crisis following its decision to abandon
nuclear power by 2022, as a massive expansion of green energy
has dealt a heavy blow to traditional utilities, forcing them to
close plants generating thousands of megawatts.
National elections on Sept. 22 are expected to help usher in
energy reforms to benefit depressed conventional power
generation prices that have suffered from generous incentives
paid to rival renewable energy firms.
($1 = 0.7384 euros)
(Reporting by Matthias Inverardi, Writing by Vera Eckert,;
Editing by Mark Potter)