ABB shows record profits

The Swiss-Swedish engineering firm, ABB, has published its yearly results showing a 24 per cent rise in net profits.

The Swiss-Swedish engineering firm, ABB, has published its yearly results showing a 24 per cent rise in net profits.

Profits rose to almost SFr2.7 billion, well above the estimates of most analysts. Turnover was up four per cent at nearly SFr41 billion.

Eleanor Sharraz, who’s a trader at Bank Leu, says the profit figure is excellent, although she says most analysts expected better turnover.

“The market had expected a sales increase of roughly nine per cent so it’s come in a bit under. But the net profit side is very positive and the outlook for ABB certainly looks very good.”

ABB itself is looking forward to a boom year ahead.

“The current economic upturn in all regions is expected to further support ABB’s business,” the company said in a statement. “ABB expects the benefit from the upturn in Europe and other major regions to become visible by mid-2000.”

The company said it expected turnover to increase by six to seven per cent a year over the next four years.

The company has also increased its dividend to SFr3.00 from SFr2.47.

From staff and wire reports