ABB's 1Q Profit Fell Sharply; Warns of 2Q Coronavirus Hit
April 28 2020 - 1:55AM
Dow Jones News
By Kim Richters
ABB Ltd. on Tuesday reported a fall in net profit for the first
quarter, and it warned that the coronavirus pandemic will continue
to weigh on its results in 2Q.
The Swiss engineering company said its net profit fell 30% to
$376 million from $535 million for the year-earlier period.
Its operational earnings before interest, taxes and amortization
declined 17% to $636 million. Its operational Ebita margin fell to
10.2% from 11.2%.
Quarterly revenue declined 9% to $6.22 billion, while orders for
the quarter fell 4% to $7.35 billion.
Overall, ABB beat analysts' expectations. ABB's 1Q revenue was
forecast at $6 billion, operational Ebita at $552 million and net
income at $189 million, according to a consensus provided by the
company.
Most of the company's production sites are currently fully or
partly operational, "with some disruption being experienced at
production and service sites in specific countries," it said.
ABB earlier this year withdrew its guidance for the year due to
the coronavirus pandemic. It didn't provide an update for full-year
outlook.
As for the company's second quarter, "we expect ABB's operations
to be significantly challenged by a sharp drop in demand due to
lockdowns in many parts of the world," the company's CEO Bjorn
Rosengren said.
The company expects 2Q orders and revenues in all segments to
show material sequential decline, with its robotics & discrete
automation unit to decline over 30% year-on-year. It also expects
margins to decline further due to volume loss.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
April 28, 2020 01:40 ET (05:40 GMT)
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