--Adds further detail and CEO comments from fourth
paragraph.
By John Revill
ZURICH--ABB Ltd (ABBN.VX) posted better-than-expected
first-quarter earnings Wednesday as a host of big contracts helped
the world's largest builder of electrical power grids weather the
headwinds caused by a stronger dollar.
Zurich-based ABB, which also makes industrial robots, said net
profit for the three months ended March 31 rose 3.7% to $564
million from $544 million a year earlier. A Dow Jones Newswires
survey of analysts forecast profit of $541 million.
Sales declined 9.6% to $8.56 billion from $9.47 billion a year
earlier. Analysts had forecast $8.41 billion.
Like-for-like revenue, which measures sales in local currency
adjusted for acquisitions and divestments, grew 3%.
The performance reflected ABB's success at landing a handful of
big contracts, including a $900 million order to connect power
grids in Norway and Germany. The large deals helped it blunt the
impact of a strong dollar, the company's reporting currency, which
reduced the company's reported sales in the eurozone and other
regions.
Chief Executive Urich Spiesshofer called the results "solid"
given a "difficult market overall." Mr. Spiesshofer credited the
performance to increased orders from ABB's three biggest markets:
the U.S., China and Germany.
Total orders rose to $10.4 billion in the quarter. That was flat
in dollars but up 15% when measured in like-for-like terms.
The company said it had bought back roughly $450 million in
shares during the first quarter, part of a $4 billion buyback
program unveiled in September 2014. That brings the total value of
shares repurchased during the program to approximately $1.2
billion.
Write to John Revill at john.revill@wsj.com
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