ABB Hit By Drop In Big Orders, Overhaul Costs
ZURICH, (APP - UrduPoint / Pakistan Point News - 21st july,2016) - Swiss-Swedish engineering giant ABB said Thursday that first-half net profits fell by around one fifth, weighed down by restructuring costs. ABB said net profit dropped by 21 percent to $906 million (821 million Euros), on a six-percent fall in sales due to fewer big orders. The group, which produces items ranging from electrical transformers to ship propulsion parts, said that sales stood at $16.5 billion for the first six months of this year. For the April to end-June period alone, large contracts fell 41 percent, it said.
Smaller orders -- below $15 million -- were steady, but were down by 3 percent when converted into Dollars. "Base order demand was strong in Germany, Spain, Sweden and Denmark, and weak in the UK amid uncertainties around Brexit," ABB said in a statement. ABB said utilities remained "cautious but continued to make selective investments to integrate renewable energy and enhance energy security". The company however won orders of more than $300 million in China for an ultra-high voltage power link.