ABB warns of uncertain outlook after profit gain
ZURICH (AFP) - Swedish-Swiss engineering group ABB reported on Thursday a 12 percent rise in third quarter net profit but warned that the outlook into 2010 was "uncertain."
| Related news: • ABB sees net income of $1 billion |
Net profit rose to 1.03 billion dollars (699 million euros) for the three months to September from 927 million dollars in the same period last year.
The gain reflected a 380 million dollars write-back as it cut provisions it had earlier made for likely costs arising from US and EU probes into alleged cartel activities, a tax dispute and asset write-downs.
Orders however plunged 21 percent during the third quarter to 7.06 billion dollars as "utility investments to expand and refurbish power transmission grids were more than offset by lower demand from most of ABB's industrial markets and construction sector," the group said.
In Europe and Asia, orders were down by about a quarter in local currencies, it said.
Third quarter revenues fell 10 percent to 7.91 billion dollars.
"The outlook for ABB’s businesses over the rest of 2009 and into 2010 remains uncertain," said the group.
While all regions continue to need energy-efficient power infrastructure, the group said it was "unclear" when and how soon capital investment by customers will recover from the economic downturn.
"In addition, the volatility of raw material prices and the limited availability of project funding continue to influence the timing of many power and industrial investment decisions, especially among small- to medium-sized companies," ABB said.
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Last Updated (Thursday, 29 October 2009 10:01)
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