ABB says earnings fell, but sees better second half

22nd July 2010, Comments 0 comments

Swedish-Swiss engineering group ABB said Thursday its net income fell 8 percent to 623 million dollars in the second quarter, but issued an upbeat forecast for the rest of 2010.

"We feel more confident about the recovery in most of our markets than three months ago and believe that our short-cycle businesses will continue to perform well over the rest of 2010," said Joe Hogan, ABB's chief executive.

"After the severe industrial recession of the last two years, customers have started again to invest in technologies for energy efficiency and productivity.

"We expect customer capital expenditures, especially on the power side, to recover later in 2010 and into 2011," he added.

ABB's orders grew five percent to 7.665 billion dollars in the second quarter of 2010, compared to the same period last year.

The recovery in orders was led mainly by increases of more than a fifth in the company's automaton divisions as the economy recovered.

The group on July 16 announced its largest ever power link order, a contract worth 700 million dollars from Germany's transmission grid operator Transpower.

© 2010 AFP

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