ABB Q1 profits exceed forecasts
A surge in profits could be an indication that ABB's turnaround plan had started to gain traction.
ABB reported its best start to the year since 2015 on Thursday, a sign the Swiss engineering company’s turnaround plan had started to gain traction.
The power transmission and automation company reported net profit of $572 million for its first quarter, beating forecasts of $562 million in a Reuters poll of 24 analysts.
Revenue rose 10 percent to $8.63 billion, also beating forecasts for $8.39 billion. Operational earnings before interest, tax and amortisation rose to $1.06 billion, while the margin of 12.3 percent was within ABB’s target range of 11 to 16 percent.
Revenue and operating EBITA were at the highest level since the first quarter of 2015, when ABB started implementing its Next Level strategy under Chief Executive Ulrich Spiesshofer.
Headquartered in Zurich, Switzerland, ABB has positioned itself as a pioneering technology leader in electrification products, robotics and motion, industrial automation and power grids, serving customers in utilities, industry and transport & infrastructure globally.
Continuing more than a 135-year history of innovation, ABB today is writing the future of industrial digitalisation and driving the Energy and Fourth Industrial Revolutions.
ABB operates in more than 100 countries with about 136,000 employees and generating about $35bn revenues annually. The company has been very active in the UAE and the entire GCC over the years, designing products and solutions to support initiatives is various sectors.
As part of wider efforts to harness the power of the sun, ABB is supplying 600 UNO-DM-PLUS grid-connected single phase solar inverters to power new-build villas in Hatta, Dubai.
Last year, also as part of Shams Dubai, ABB inaugurated a 315 kilowatt (kW) solar rooftop power plant located at its office in the Al Quoz industrial area.
The energy produced from the 1,213 solar panels at the plant supplies ABB offices with electricity while the surplus is transferred into DEWA’s network.
Early this year, ABB provided a brighter outlook for 2018 despite its 2017 fourth quarter earnings falling below expectations. The group said that improving markets around the world would drive profitability this year.
In the last three months of 2017, the company saw orders falling 3% to $8.48bn compared to the same period in 2016. Net profit fell 8% to $393mn during the three months ended December 31, missing the average estimate of $424mn.