ABB Profit Drops 21% Amid China Slowdown, Drop in Oil Prices
- Third quarter results reflect challenging markets, CEO says
- Profitability improved 50 basis points on cost measures
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ABB Ltd, the power-grid maker that has activist Cevian Capital as a shareholder, said third-quarter margins improved on cost cutting even as profit dropped 21 percent amid a slowdown in China and feeble demand from oil and gas customers.
Net income declined to $577 million, the Oerlikon, Switzerland-based company said in a statement on Wednesday. Earnings before interest, taxes and amortization fell 9 percent to $1.08 billion while a savings push lifted the operating ebitda margin 50 basis points to 12.5 percent.