Power grids sales drives ABB 3Q net profit higher

Credit: REUTERS/ARND WIEGMANN

ABB's third-quarter net profit rose more than eight-fold to $4.53 billion, the engineering company said on Friday, as it booked the proceeds of selling its power grid business to Hitachi.

Adds detail, CEO comment

ZURICH, Oct 23 (Reuters) - ABB's ABBN.Sthird-quarter net profit rose more than eight-fold to $4.53 billion, the engineering company said on Friday, as it booked the proceeds of selling its power grid business to Hitachi 6501.T.

The Swiss electrification and robotics company said its operational EBITA fell 2% to $787 million, beating forecasts for $689 million in a company-gathered consensus of analysts.

ABB, whose results give insight into the health of the broader industrial economy, said demand had decreased in all regions as the COVID-19 pandemic hit activity.

The maker of electric car charging stations and factory drive systems said revenues fell 9% to $6.1 billion, beating the consensus forecast for $6.3 billion.

"Third-quarter revenues in all business areas were still dampened due to the impact of COVID-19, although a strong recovery in China and ongoing cost mitigation efforts supported a strong underlying performance," Chief Executive Bjorn Rosengren said in a statement.

ABB said it expected order intake to remain "challenged" and revenue growth to slow during the fourth quarter, although it sees margins improving.

(Reporting by John Revill, editing by John Miller)

((John.Revill@thomsonreuters.com; +41 58306 7022; Reuters Messaging: john.revill.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More