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.




-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


(END) Dow Jones Newswires

October 23, 2019 06:49 ET (10:49 GMT)

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