Declines in the 1st quarter

ABB

Lukas Dehling, 21.04.2016, 13:55

Declines in the 1st quarter

ABB had to report declines in both order intake and sales in the figures for the first quarter of 2016. Things are looking better for the service business, which is growing slightly and is becoming increasingly important for the company.

Ulrich Spiesshofer, Chief Executive Officer of ABB

Images

"We are continuing the consistent implementation of our next-level strategy and are making further capacity adjustments," said Ulrich Spiesshofer, Chief Executive Officer of ABB.

Compared to the previous year, ABB lost ground in the most important key figures.

Adjusted for currency effects, ABB 's order intake fell by 7% to around USD 10.4 billion compared to the same period of the previous year - a decrease of 11% in absolute terms. ABB sees the reason for this in the significant receipt of major orders in the first quarter of last year.

All divisions reported a decline in order intake. The situation is not much better in terms of sales: only the Electrification Products division remained largely stable.

ABB also reported a decline in revenue: This fell from around USD8.5 billion in 2015 to less than USD 7 billion this year, which represents a drop of 8% in absolute terms. Adjusted for currency and portfolio effects, the decline was 2%. According to ABB, this was mainly due to timing effects in the processing of the order backlog and declines in the volume of short-term revenue-generating orders caused by weak demand in the process industry as well as in many parts of the sales channels. In the service business, sales increased by 4% (decline of 1% in US dollars) and contributed 18% to total sales, compared to 17% in the same quarter of the previous year.

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