ABB Reports Higher 4Q Profit Despite Lower Revenue -- Earnings Review
February 05 2020 - 8:34AM
Dow Jones News
By Kim Richters
Swiss engineering company ABB Ltd. (ABBN.EB) reported
fourth-quarter results on Wednesday. Here's what you need to
know:
REVENUE: The company's revenue declined 4% to $7.07 billion, due
to "challenging market conditions," it said. Analysts had expected
revenue of $7.14 billion for the period, according to a consensus
provided by the company.
NET PROFIT: Net profit rose to $325 million from $317 million
the year-earlier period. Analysts expected net income of $230
million.
OPERATIONAL EBITA: Quarterly operational earnings before
interest, taxes and amortization rose 22% to $710 million.
According to the consensus, analysts expected operational Ebita to
be $711 million.
ABB reported a "good enough set of numbers with good order
intake progression and resilient margins despite weaker revenues,"
analysts at UBS said, calling the company's results a "decent end
to 2019."
WHAT WE WATCHED:
-COST-CUTTING PROGRESS: The company's management said ABB's
overhaul was on track, adding that it was "clearly starting to see
the positive effects of implementing our new operating model and
new culture."
-OUTLOOK 2020: ABB expects revenues for the full-year 2020 to be
steady or slightly higher on comparable basis amid "continued
weakness in some end-markets." This doesn't include possible
impacts from the coronavirus outbreak, ABB said.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
February 05, 2020 08:19 ET (13:19 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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