Decline in power orders leads to disappointing results for ABB

ABB recorded a sales drop of 9 per cent as the company suffered from a decline in orders from its power business in Q4 of last year.

The company said in a statement that net income was $680m in the fourth-quarter, compared with an analyst estimate of $694m. Orders fell 6.4 percent to $9.4bn, led by a 20 per cent decline in the power systems division, whose 15 per cent revenue decline was a chief reason for the overall disappointing results.
Ulrich Spiesshofer
Chief Executive Officer Ulrich Spiesshofer, in a video message on ABB's website, said, “Higher like-for-like revenues in the company’s short-cycle businesses, especially in low-voltage products, were not sufficient to offset revenue decreases in the power divisions.”

He added, “We need to focus on our cost reduction and our improvement on our working capital.”

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...