ABB Beat 2Q Expectations But Adjusted Earnings, Revenue Fell
July 22 2020 - 1:49AM
Dow Jones News
By Kim Richters
ABB Ltd. said Wednesday that adjusted earnings and revenue for
the second quarter declined due to the coronavirus pandemic, but
beat analysts' expectations.
The Swiss engineering company said its operational earnings
before interest, taxes and amortization fell to $651 million for
the period from $825 million a year earlier.
Net profit jumped to $319 million from $64 million for the
year-earlier period, when it was dragged by charges relating to the
sale of its solar-inverter business.
Quarterly revenue declined 14% to $6.15 billion, while orders
for the quarter fell 18% to $6.05 billion.
Analysts had forecast ABB's second-quarter revenue to be $5.61
billion, operational Ebita at $446 million and net income at $128
million, according to a consensus provided by the company.
For the third quarter, ABB expects some improvement in
year-on-year order decline and revenues to remain strongly hit on
year by the pandemic. Revenue could recover slightly in the last
2020 quarter at best, it said.
"A lot of uncertainty remains and we still see some challenging
quarters ahead," the company's CEO Bjorn Rosengren said.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
July 22, 2020 01:34 ET (05:34 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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