ABB Sales Grow in Second Quarter - Modern Distribution Management

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ABB Sales Grow in Second Quarter

Most product business saw sequential order growth.
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Switzerland-based power and automation company ABB reported sales for the second quarter of $10.2 billion, a 6 percent increase compared to the same period a year ago. Organic sales increased 2 percent. Profit increased 16 percent to $763 million.

 “We grew orders in a number of key sectors and geographies, including China, and we saw an encouraging trend with sequential order growth in most of our product business compared to the first quarter of the year,” said ABB CEO Joe Hogan. “At the same time, we executed from our strong order backlog to drive both revenues and earnings higher, and we continued to take out cost to maintain profitability despite the uncertain market conditions.

“Orders were down as the strategic realignment in Power Systems launched at the end of last year started to take shape with our focus on greater project selectivity and higher profitability,” Hogan said. “We’ve seen the first results in higher gross margins in the division’s order backlog.

“Delays in the award of large orders, which is linked to the ongoing global macroeconomic uncertainty, also impacted orders this quarter. But our underlying demand drivers remain sound and we still generated a book-to-bill ratio for the first half of the year of 0.99, and 1.06 excluding the Power Systems division.

“In addition, we saw another good contribution from Thomas & Betts, with synergies on track. Both power divisions achieved a solid operational EBITDA margin, and we grew service revenues faster than total organic revenues,” Hogan said.

For the first half, sales for ABB were $19.9 billion, an increase of 7 percent year-over-year. Profit increased 6 percent to $1.4 billion. 

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