ABB has to accept significant losses in order intake. The situation is better for sales, which remained constant on a comparable basis.

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Order intake at ABB fell by 13% (14% in US dollars) in the third quarter of 2016 compared to the previous year, which according to the company was due to timing effects in the awarding of large orders and a decline in the volume of early-cycle orders. According to the company, basic orders (less than USD 15 million) fell by 6%. Large orders (USD 15 million or more) fell in all divisions and accounted for 11% of total order intake, compared to 17% in the same period of the previous year. Orders for service and software fell by 3 % and contributed 17 % to total order intake, compared with 16 % in the prior-year quarter.

Sales at ABB were relatively stable in the third quarter of 2016, with a decline of 3% in US dollar terms. Sales in the service and software business increased by 5% overall, contributing 18% to total sales compared to 17% in the same quarter last year.

The individual divisions

In ABB's Electrification Products division, order intake declined in the third quarter, as the positive order trend in Europe was unable to compensate for the declines in the Americas and AMEA. The markets in China, Saudi Arabia, Brazil and Turkey proved to be particularly challenging, while the markets in Italy, Switzerland and India were stronger. Sales in this sector remained stable.

In terms of incoming orders, all divisions are below the previous year's level.

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According to ABB, in the Industrial Automation and Drives division, the continued buoyant demand in the robotics and food and beverage sectors was unable to offset the lower level of investment in the process industry, for example in the oil and gas sector. This had a negative impact on order development. Sales remained stable due to strong order processing.

In the Process Automation division, order intake fell by 21% overall (22% in US dollars), as declining investments and subdued spending in the process industry had a negative impact on sales.
as declining investments and subdued spending in the process industry once again weighed on large and basic orders (down 13% in US dollars and on a comparable basis). Sales fell by 7% because the constant demand for specialty vessels was unable to compensate for the decline in segments such as the mining industry and the oil and gas sector.

Total order intake in the Electricity Grids division fell compared to the same quarter of the previous year, mainly due to timing effects in the awarding of major contracts. The lower base orders reflect the impact of subdued markets such as the USA, Saudi Arabia and Brazil, while the market trend in Europe had a supportive effect. Sales increased slightly thanks to the solid execution of the high order backlog.

First half year of ABB Germany

ABB Germany also announced figures: In the first half of 2016, order intake fell slightly to €1.68 billion (previous year: €1.74 billion). In contrast, basic orders increased. At EUR 1.63 billion, turnover remained almost the same as in the previous year (EUR 1.65 billion). One of the most significant orders amounted to around 140 million euros. As at June 30, 2016, ABB employed 10,480 people in Germany.

"Thanks to the consistent implementation of our next-level strategy, we were able to maintain the previous year's level even in a challenging environment. We have further increased our market share in the mechanical engineering and food & beverage segments," says Hans-Georg Krabbe, CEO of ABB AG.

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Business development in the individual divisions varied: the Electrification Products division recorded an increase in both incoming orders and sales. Incoming orders rose from EUR 645 million to EUR 668 million and sales from EUR 620 million to EUR 638 million. The Industrial Automation and Drives division also increased its order intake, which amounted to EUR 268 million, 14% more than in the previous year (EUR 234 million). At EUR 231 million, sales remained at the previous year's level. The Process Automation division recorded a decline in order intake, which amounted to EUR 262 million (2015: EUR 300 million). This was primarily due to a major order won by the Power Generation division in the previous year. Sales, on the other hand, increased from EUR 256 million to EUR 286 million. In March of this year, the Power Grids division booked the Kriegers Flak order. However, this was offset by a number of major orders in the previous year, such as Nordlink - Europe's longest HVDC connection from Germany to Norway. As a result, incoming orders did not reach the 2015 level (EUR 559 million) and amounted to EUR 483 million. Lower revenue from offshore wind projects also led to a decline in revenue overall to EUR 479 million (2015: EUR 551 million).