ABB sees net income of $1 billion
ABB said Monday its third quarter net profit will be boosted to $1 billion by a reduction in provisions.
| Related news: • ABB fined for 'gentleman's cartel' |
As a result the Zurich-based company expects a net income for the third quarter of approximately $1 billion.
In December last year ABB said it had reserved for anticipated charges relating to certain compliance, tax and restructuring matters. In Monday’s statement the company said it had made “significant positive and negative changes to some of those provisions as well as adjustments to other reserves”.
The news came after the European Commission fined the company 33.8 million euros ($50.43 million) for taking part in a power transformer cartel. The reserves included provisions for the European Commission’s investigation.
"ABB’s provisions as at the end of the third quarter will be impacted primarily by changes in the provisions relating to alleged anti-competitive practices, including, but not limited to, the European Commission’s power transformer decision earlier this month," it said in a statement.
The group said, however, that the cost of doing business in Russia had increased and that the company “continues reviewing the situation and assessing its business model in Russia”.
In July, the group posted net profits of 675 million dollars for the second quarter.
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Last Updated (Monday, 19 October 2009 11:34)
