ABB Reports 2nd Qtr. Adjusted Earnings – Exceeds Expectations
Swiss power and automation equipment maker ABB Ltd. (NYSE: ABB – $20.91) said that second-quarter profit fell 31% due to restructuring expenses, and cited an uncertain global economic outlook complicated by the U.K. decision to leave the European Union. Revenue fell 5% to $8.68 billion from $9.17 billion. Analysts had expected revenue of $8.8 billion. Net income was $406 million in the three months ended June, compared with $588 million a year earlier. On a per share basis, ABB posted adjusted earnings (excluding the restructuring costs) of $0.35 per share vs. analysts’ estimates of $0.26. The company went on to say, some macroeconomic signs in the U.S. remain positive and growth in China is expected to continue, although at a slower pace than in 2015. Demand in Europe was strong during the second quarter, while orders in the Americas region slid. Demand in Asia, the Middle East and Africa was mixed, with strong demand from China and India offset by weaker figures from other parts of the region. The outlook is also being affected by increased uncertainties relating to Brexit in Europe, and geopolitical tensions in various parts of the world.
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