On a comparable basis (local currency adjusted for acquisitions and divestitures), ABB 's order intake increased by 3 % overall (stable in US dollars) compared with the prior-year period. Significant growth in the Robotics and Drives division and the Industrial Automation division more than offset the decline in the Electrification Products and Power Grids divisions. The order backlog amounted to USD 23.6 billion at the end of June 2017 and was 1% (7% in US dollars) lower than in the second quarter of 2016.

The attractive long-term outlook for demand in ABB's three most important customer segments - energy supply, industry, transportation and infrastructure - is based on the energy transition and the 4th industrial revolution.

© ABB

Sales increased by 1% in the second quarter of 2017 (decline of 3% in US dollars). It increased in the Electrification Products and Robotics & Drives divisions. In the Power Grids division, sales were on a par with the same quarter of the previous year, while sales in the Industrial Automation division weakened due to the lower order backlog. Sales in the service and software business remained stable (down 2% in US dollars) and contributed 17% to total sales, as in the same period of the previous year.

Operating EBITA, on the other hand, fell by 5% (7% in US dollars) to USD 1.04 billion after adjusting for currency effects. The operating EBITA margin amounted to 12.4% and was therefore 0.5 percentage points lower than in the same period of the previous year. Consolidated profit rose from USD 406 million to USD 525 million.

The development of the divisions

In the first half of 2017, incoming orders for electrification products rose by 1% overall (down 2% in US dollars). Sales increased by 2% in the quarter under review (decline of 1% in US dollars). The operating EBITA margin improved compared to the previous quarter, but declined compared to the second quarter of 2016. This was primarily due to higher raw material costs, which more than offset productivity gains and cost reductions.

The Robotics and Drives division increased its order intake by 14% overall (12% in US dollars), with all regions and business units contributing to the considerable growth. External base orders increased by 10% (8% in US dollars), driven by continued strong growth in the robotics segment and the consumer goods industry. Sales grew by 5% (3% in US dollars).

In the industrial automation segment, total order intake grew by 8% (6% in US dollars) due to individual investments in the oil and gas sector and in the mining industry. External basic orders continued to develop positively. Sales fell by 7% (9% in US dollars) due to the lower order backlog.

Finally, external base orders for electricity grids increased by 2% (stable in US dollars) in the quarter under review thanks to investments in emerging markets, while total order intake was impacted by the scheduling of large orders. Sales remained stable thanks to the solid execution of the order backlog (down 3% in US dollars).

Changes to the Group Executive Board

Effective April 1, 2017, Timo Ihamuotila moved from Nokia to ABB, where he was appointed to the Executive Committee as Chief Financial Officer. Chunyuan Gu, Managing Director of ABB in China, was appointed Head of the Asia, Middle East and Africa (AMEA) region and appointed to the Executive Committee effective July 1, 2017. Chunyuan takes over as Head of the AMEA region from Frank Duggan, who has been appointed Head of the Europe region. He succeeds Bernhard Jucker, who retired on June 30 after a long career at ABB.