ABB profit rises on strong order growth
ABB Ltd. (ABBN.EB) said Thursday that its second-quarter net profit rose, driven by broad-based order growth and improved productivity.
Net profit for the quarter was $681 million compared with $525 million a year earlier, the technology company said. Revenue was $8.89 billion, up from $8.45 billion a year earlier, while orders rose 14% in U.S. dollar terms to $9.48 billion, ABB said.
Analysts expected net profit of $626 million on revenue of $9.02 billion, according to a FactSet-compiled consensus.
Orders rose across all divisions and all regions, mostly driven by an increase in orders below $15 million, ABB said. Large orders represented 7% of total orders, compared with 8% in the same quarter a year earlier, the company said.
ABB said its strategy of focusing on profitable growth by streamlining its portfolio and trimming costs has been effective.
"Through our continued productivity efforts, we delivered margin improvement and double-digit operational EPS growth," said ABB’s Chief Executive Ulrich Spiesshofer.
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