ABB Withdraws 2020 View As It Expects 1Q Revenue Decline Amid Coronavirus
March 30 2020 - 1:57AM
Dow Jones News
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)
Copyright (c) 2020 Dow Jones & Company, Inc.
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