By Kim Richters 
 

ABB Ltd. said Monday that it is withdrawing its 2020 financial guidance as it expects lower revenue and operational earnings margins in its first quarter amid the coronavirus pandemic.

The Swiss engineering company said it wasn't able to assess the "exact impact" of the pandemic on its first quarter results, but forecasts revenues in all business segments to decline and orders to be slightly less hit.

Its operational earnings before interest, taxes and amortization margins across the divisions are also expected to decline in the same period.

ABB is accelerating measures to mitigate the hit of the pandemic with steps such as cutting nonessential costs and adjusting capacity "ahead of what looks set to be a difficult second quarter."

So far, the majority of its production sites are fully or partly operating and the impact on supply chains has been minimal, it said.

In the company's second largest market, China, its three main production sites in Shanghai, Beijing and Xiamen "have largely returned to normal" and business is improving.

ABB said it is reducing the compensation of the board of directors and the executive committee by 10% temporarily, donating the money to "towards efforts aimed at fighting the impacts of the coronavirus crisis." The pay-cut may extend to senior management levels.

 

Write to Kim Richters at kim.richters@wsj.com

 

(END) Dow Jones Newswires

March 30, 2020 01:42 ET (05:42 GMT)

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