ABB Q2 profits surge 43%, sees 'favourable' outlook

21st July 2011, Comments 0 comments

Swiss engineering group ABB on Thursday posted a 43 percent increase in second-quarter year-on-year net profits to $893 million (625.7 million euros), meeting investors' expectations.

"This was a strong quarter where we continued to execute well, driving further revenue growth, cash generation and a solid increase in shareholder returns," ABB chief executive Joe Hogan said in a statement.

Revenues rose 28 percent to $9.68 billion compared to a year earlier, buoyed by strong industrial growth, higher earnings in its power systems division, and contributions from the recent Baldor Electric acquisition, it said.

Orders grew 29 percent to $9.867 billion, compared to a year earlier, driven by demand for robots, energy-efficient motors, as well as higher orders in the oil and gas, pulp and paper, metals and marine sectors, ABB said.

Looking ahead, ABB acknowledged that there were concerns around inflation and public debt, but the "long-term global outlook in ABB's major end markets remains favourable."

It added that high oil prices and a shift away from nuclear power would increase demand for energy-efficient power technologies.

Some industrialised states, including Germany and Switzerland, have decided to phase out nuclear power following Japan's recent accident at the Fukushima power plant.

© 2011 AFP

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