ABB Q2, 2009 Results

Source: Revenues stable as markets continue to challenge, cost take-out supports margins

• Revenues of $7.9 billion on continued successful execution of the order backlog
• $1 billion EBIT after ca. $120 million restructuring-related costs – EBIT margin at 13.2%
• Orders down 27% in local currencies vs record Q2 in 2008 – base orders 25% lower
• Cash from operations above $1 billion, net income at $675 million

as % of revenues	Q2 09	Q2 08
Power Products	19.50%	19.40%
Power Systems	7.60%	7.10%
Automation Products	14.90%	19.60%
Process Automation	9.30%	11.80%
Robotics	-21.80%	7.00%

 

Net cash at the end of the second quarter was $5.7 billion compared to $4.8 billion at the end of the previous quarter. Cash flow from operations amounted to $1.1 billion, slightly higher than the second quarter of 2008

 

Demand in ABB’s industrial end markets depends to a large extent on GDP growth and capital spending, together with commodity prices. Customers’ need to steadily improve efficiency and productivity to meet increasing competition also drives orders, along with demand in construction and in general industry.

Therefore, management’s priority for 2009 remains to ensure that the company has the flexibility to respond quickly to changing market conditions, taking advantage of its global footprint, strong balance sheet and leading technologies to improve its cost competitiveness while simultaneously tapping further opportunities for profitable growth.

ABB also confirms its previously published targets for the period 2007 to 2011, with the exception of the Robotics division, which is facing an unprecedented market downturn and requires further restructuring.