ABB shows third quarter profit

Swiss-based engineering giant ABB has announced a rise in profits in the third quarter of 2009 but says there was a drop in orders and the outlook remains uncertain.

In a statement released on Thursday, ABB said that it had made a net profit of $1.034 billion, up by 12 per cent from the same period last year. The result was boosted by previously announced provision adjustment of $380 million.

Turnover dropped by 10 per cent to $7.9 billion and orders fell by 15 per cent, to $7.1 billion. The figures released were roughly in line with analysts’ expectations.

“Steady demand from the oil and gas sector was more than offset by ongoing weakness in other sectors,” the statement explained.

Chief executive Joe Hogan said the company would continue to work to ensure its costs were in line with market demand, while staying “aggressively positioned to capture the significant growth opportunities in power infrastructure, renewables, energy efficiency and emerging markets”.

However, the company warned that the outlook for the rest of 2009 and for 2010 remained “uncertain”. Volatile prices for raw materials and limited funding capabilities could hamper growth, it said.

swissinfo.ch and agencies