ABB: earnings 'resilient' given 'challenging' market

(CercleFinance.com) - Net profit at Swiss engineering group ABB rose in the fourth quarter as lower costs offset slowing industrial demand, mainly in the US.


Net income from continuing operations came in at 307 million dollars, up 46% year-on-year, due to the sale of its shares in two Chinese joint ventures, an adjustment to the price paid for GE Industrial Solutions (GEIS) and a reduction in the loss on the planned divestment of the solar inverter business.

Revenues were 4% lower at 7.1 billion dollars, but ABB said the performance was "resilient" in the face of challenging market conditions.

Indeed, macroeconomic indicators suggest weaker growth in Europe and the US, while China's stabilising trend might be impacted by the coronavirus outbreak, it noted in a statement.

ABB also said that the divestment of its power grid unit was "on track".

its shares are currently up 2.5% on the SIX Swiss Exchange this morning.

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