ABB Q2 Net Profit Slips 8%
ABB has reported a drop of 8% in its net profit for three months ending June 30 due to a slowdown in several major markets such as China and the USA.
Swiss power and automation firm said its Q2 net income was USD 588 million compared to the USD 636 million for the same period last year.
Revenues also fell from USD 10,190 million to USD 9,165 million.
“As anticipated, our order development reflects a tougher market environment and weaker demand in oil and gas, China and the US compared to a strong second quarter last year,” said CEO Ulrich Spiesshofer.
“Focusing on relentless execution and the turnaround in Power Systems, we expanded our operational EBITA margin, with improved profitability in three divisions. Increasing revenues towards the end of the quarter resulted in higher receivables and lower associated cash from operations. Targeted measures to increase productivity and simplify the organization are bearing fruit, resulting in increased customer engagement and additional cost savings.“