ABB expects USD 1 billion in Q3 profits
Swedish-Swiss engineering group ABB said Monday it expected to post USD 1 billion in net profit for the third quarter.Zurich -- Swedish-Swiss engineering group ABB said Monday it expected to post USD 1 billion (CHF 1.02 billion, EUR 670 million) in net profit for the third quarter after a significant cut in its provisions.
The group set aside USD 850 million in December for expected costs from US and EU investigations into alleged cartel activities, asset depreciation and a tax dispute. But it has now reduced the amount to USD 380 million.
"ABB’s provisions as at the end of the third quarter will be impacted primarily by changes in the provisions relating to alleged anti-competitive practices, including, but not limited to, the European Commission’s power transformer decision earlier this month," it said in a statement.
The group was fined EUR 33.75 million by the European Commission over anti-competitive practices in the power transformer market.
ABB added that its third-quarter earnings, which are scheduled to be announced on 29 October, would be hurt by an increase in charges incurred by its business in Russia.
"As a result, ABB continues reviewing the situation and assessing its business model in Russia," it added.
In July, the group posted net profits of USD 675 million for the second quarter.
AFP / Expatica