Global engineering group ABB (SIX: ABBN, OMX: ABB, NYSE: ABB) speaks of a steady performance in a mixed market during Q2 2012. Revenues were almost unchanged from a year ago at 9.66 billion USD but measured in local currencies the number would have been 6% higher. Half of that was organic as Thomas & Betts acquisition has now been completed. Orders toppled the 10 billion Dollar hurdle, showing growth in all regions behind continued investments in power grid updates and industrial productivity.
EBIT of 1 billion USD is a whole 25% weaker than last year and also considerably lower than market consensus. This was due to lower margins achieved on the orders executed during the quarter. The impact was even mitigated somewhat by cost savings. Currency effects played their part too. Cash flow was a third weaker than last year.
Current uncertainty does not seem to worry the company too much. It notes continued resiliency of orders in Europe and higher Chinese orders as just a couple or reasons why. Longer term the major market trends should work in ABB’s favour. These include the need for resource efficiency and urbanization in emerging countries. It still stops short of giving an exact guidance, just saying focus on costs will continue.
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