Swiss-Swedish conglomerate ABB Group (OMX: ABB, SIX: ABBN, NYSE: ABB) maintains its full year guidance in second quarter interim report but notes macroeconomic concerns around public debt and inflation have increased. Top line was particularly strong as revenue grew to 9.68 billion USD. Orders received were up 10% organically and 18% overall. EBITDA margin was down to 16%, something which the company alludes to tough comparison period.
The engineering group, which is global leader in power and automation, sees macro concerns in both segments. In power segment it highlights Chinese inflation and US debt along with the situation in Europe as causes for concern. The group says that competition is emerging thus creating price pressures. In automation segment ABB feels we may be seeing first signs of moderation in the business cycle. All in all though, both segments are performing well and have very high order intake. ABB is also planning to push through price increases in automation.
While the result itself was better than expected, ABB's share price has turned negative along with the rest of the market after opening close to yesterday’s level. The market situation uncertainty explains most of the decline, which is now at 3%. More information is available here.
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