Shares in ABB Rise on Growing Order Book
April 19 2018 - 6:15AM
Dow Jones News
By Nathan Allen
Shares in ABB Ltd. (ABBN.EB) jumped more than 5% Thursday
morning, after the Swiss engineer reported first-quarter order
growth across all units, as well as increased sales and stronger
margins.
Total orders rose 6% to $9.8 billion for the quarter, thanks in
part to an 11% rise in orders booked by the robotics-and-motion
unit.
Base orders--contracts valued at less than $15 million--drove
overall order growth, leading analysts at Vontobel to comment that
"large orders are still missing."
The trend is set to continue through 2018, as large orders are
unlikely to pick up until 2019, when several companies announce
tenders, Chief Executive Ulrich Spiesshofer said on a conference
call.
First-quarter revenue was $8.63 billion, up 1% on year and 3%
ahead of consensus, while net profit fell to $572 million from $724
million a year earlier.
ABB said the lower profit was due to a tough comparison effect
with the first quarter of 2017, when the company booked gains from
the divestment of its cables business. Stripping out the effects of
the transaction, ABB said its net profit grew 10% to $699
million.
Analysts at Morgan Stanley said the results were "good enough,"
but pointed out that the consensus beat was largely down to
foreign-exchange tailwinds.
At 0927 GMT ABB shares were up 4.9%, at CHF23.67.
Nevertheless, Jefferies says it still sees better prospects
elsewhere, and expects other European capital-goods companies to
report stronger numbers this quarter.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
April 19, 2018 06:00 ET (10:00 GMT)
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