ABB 3Q With Lower Net Profit, Revenue -- Earnings Review
October 23 2019 - 7:04AM
Dow Jones News
By Kim Richters
Swiss engineering company ABB Ltd. (ABBN.EB) reported results
for its third quarter earlier today. Here's what you need to
know:
PROFIT: Net profit for the period fell to $515 million from $603
million a year earlier, the company said. It beat expectations of
$363 million for the quarter.
REVENUE: Revenue for the period fell to $6.89 billion from $7.10
billion the previous year, it said. Analysts expected $6.94
billion.
OPERATIONAL EBITA: Operational Ebita fell to $806 million from
$814 million. The company beat another consensus forecast of $792
million, but consensus for this figure had been lowered by 6%
recently, according to Citi.
WHAT WE WATCHED:
-SALE & ACQUISITION PROGRESS: ABB's sold power-grids
business was reported as discontinued operations in the earnings
report. The unit's performance was "surprisingly weak at $128
million EBIT," Morgan Stanley says.
-CAUTIOUS OUTLOOK: As expected, ABB remained cautious, with a
mixed outlook for Europe and China and a weakening one for the U.S.
The company said it continues to expect a "slight revenue growth
and improved operating margins," which could lead to consensus
upgrades of margins, UBS says.
-MODERATE GROWTH: ABB's electrification and motion businesses
grew in revenue, while robotics and discrete automation as well as
industrial automation declined, with the latter negatively impacted
by the revaluation of a project. "Given the magnitude of the recent
upcycle, which is ending, we are disappointed by the overall growth
performance," Morgan Stanley says.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
October 23, 2019 06:49 ET (10:49 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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