0NX2: ABB Ltd: ABB Q2: Improved Results on Balanced Portfolio
UK Regulatory Announcement
*Higher revenues, operational EBITDA and EPS despite uncertain market
*Early-cycle product businesses trending sequentially higher in several key
*Orders reflect greater ABB project selectivity and lower utility and
industrial large capex
*Thomas & Betts with positive contribution, synergies on track
ABB reported higher revenues and earnings in the second quarter of 2013
despite challenging global markets.
“We continue to see the positive impact on our results from our balanced
geographic and business portfolio,” said ABB Chief Executive Officer Joe
Hogan. “We grew orders in a number of key sectors and geographies, including
China, and we saw an encouraging trend with sequential order growth in most of
our product business compared to the first quarter of the year.
“At the same time, we executed from our strong order backlog to drive both
revenues and earnings higher, and we continued to take out cost to maintain
profitability despite the uncertain market conditions.
“Orders were down as the strategic realignment in Power Systems launched at
the end of last year started to take shape with our focus on greater project
selectivity and higher profitability,” Hogan said. “We’ve seen the first
results in higher gross margins in the division’s order backlog.
“Delays in the award of large orders, which is linked to the ongoing global
macroeconomic uncertainty, also impacted orders this quarter. But our
underlying demand drivers remain sound and we still generated a book-to-bill
ratio for the first half of the year of 0.99, and 1.06 excluding the Power
“In addition, we saw another good contribution from Thomas & Betts, with
synergies on track. Both power divisions achieved a solid operational EBITDA
margin, and we grew service revenues faster than total organic revenues,”
Hogan said. “And our improving Net Promoter Scores show we are making progress
to increase customer satisfaction.
“Our outlook for the rest of the year remains unchanged from the end of the
first quarter. Macro indicators are increasingly mixed, which makes predicting
the timing of orders more difficult, especially large project orders. However,
our strong backlog will continue to partly mitigate that uncertainty, while we
continue to focus on balancing cost and growth and increasing customer
satisfaction. We remain confident that our business and regional balance will
continue to provide us with profitable growth opportunities.”
For further information refer to www.abb.com
The complete press release including the appendices is available at
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ABB Group Corporate Communications
Thomas Schmidt, Antonio Ligi
Tel: 41 43 317 6568
Fax: 41 43 317 7958
Switzerland: Tel. 41 43 317 7111
USA: Tel. 1 919 856 3827
This information was brought to you by Cision http://news.cision.com
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