ABB profits continue downward plunge
ABB, the Swiss-Swedish electro-technical concern, saw its net profits drop 76 per cent to $289 million (SFr479 million) in the first nine months of the year, compared to the same period in 2000.
At the same time, revenue increased four per cent, reaching $16.877 billion. Earnings before interest and tax were down 26 per cent at $766 million.
There was some good news for staff at ABB Switzerland after the company announced that staff reductions, announced by the ABB Group in mid-July involving 12,000 posts worldwide, can be achieved at the Swiss unit through normal staff turnover.
“The Group’s measures can in fact be achieved in large measure through natural staff turnover,” the company said in a statement. “The highly satisfactory outcome for ABB Switzerland is a consequence of ongoing productivity improvements and good to very good trading performance by most divisions.”
However, ABB also said on Wednesday that it wants to speed up its cost-cutting programme because of declining sales.
“We need to become leaner as fast as possible given the economic climate,” said Jörgen Centerman, ABB’s chief executive officer.
“By taking more of the planned restructuring costs earlier we will reduce earnings now, but we build competitiveness and gain productivity improvements that pay back over time.”
The ABB share price has been taking a beating at the Swiss stock exchange – it’s lost 70 per cent of its value since the beginning of the year.
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