ABB Sales Edged Down at Start of 'Transitional Year' -- Update
April 20 2017 - 4:52AM
Dow Jones News
By Brian Blackstone
ZURICH-- ABB Ltd. said Thursday first-quarter revenue fell
slightly to $7.85 billion from a year ago, but net income rose on
divestment of the company's high-voltage cable business, pushing
its shares higher.
The Swiss-based engineering and power-grid company said sales
were down 1% from $7.90 billion in the year-ago quarter, though
they rose 3% on a comparable basis that adjusted for currency
changes, acquisitions and divestments. Orders were $8.4 billion in
the first three months of the year, down 9% from the same period in
2016, though they declined a milder 3% on a comparable basis.
The company said net income was $724 million in the latest
quarter, up from $500 million a year ago.
"ABB is executing well operationally, while fighting an uphill
battle on several fronts," said analysts at Vontobel in a research
note. ABB shares were up 1.7% at 22.69 at 0743 GMT.
ABB said 2017 "is expected to be a transitional year" with
"modest growth and increased uncertainties" in global markets.
"Some macroeconomic signs in the U.S. remain positive and growth in
China is expected to continue," it said.
The company said an investigation into a theft at its South
Korean subsidiary had concluded that the fraud was limited to that
country. The cost of the theft was initially estimated in February
to be about $100 million, but the company later reduced that figure
to $73 million because of expected payouts from its insurance
policies.
"ABB has started implementing disciplinary consequences and will
continue to do so as appropriate," the company said Thursday.
Write to Brian Blackstone at brian.blackstone@wsj.com
(END) Dow Jones Newswires
April 20, 2017 04:37 ET (08:37 GMT)
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