"Thanks to the strong performance of the Power Grids division, we grew in the fourth quarter despite the difficult market environment," says Ulrich Spiesshofer, CEO of ABB, looking back on the final quarter of the 2016 financial year. Specifically, order intake increased by 3% (stable in US dollars) on a comparable basis (local currency adjusted for acquisitions and disposals) compared to the same quarter of the previous year, which was due in particular to growth in large orders of USD 15 million or more. While basic orders rose in the Industrial Automation and Drives division, they remained stable in the Process Automation division and fell in the other two divisions. Orders for service and software increased by 4% (2% in US dollars) compared to the fourth quarter of 2015 and contributed 20% to total order intake.

Sales rose by 1% on a comparable basis in the fourth quarter of 2016 (minus 3% in US dollars), supported by growth in the Electrification Products and Power Grids divisions. Sales in the service and software business rose by a total of 2% (stable in US dollars) and contributed 18.5% to total sales. Finally, operating EBITA fell by 2% in constant currency (4% in US dollars) to USD 1.057 billion. The operating margin amounted to 11.7% and was therefore 20 basis points lower than in the same period of the previous year.

A look at ABB's2016 financial year as a whole paints the following picture: order intake fell by 5 % on a comparable basis compared with the 2015 financial year (down 8 % in US dollars). Basic orders fell by 2%, while major orders decreased by 24% compared to the high order intake in 2015 (minus 27% in US dollars). Orders for service and software grew by 3% overall and contributed 18.4% to total order intake.

Group sales fell by 1% in 2016 (minus 5% in US dollars), although according to Spiesshofer, sales growth in the Power Grids and Electrification Products divisions compensated for the declining figures in the Industrial Automation and Drives division and the Process Automation division. Sales in the service and software business increased by a total of 3% to 17.8% of total Group sales. Consolidated profit amounted to USD 1.96 billion in the 2016 financial year - an increase of 2% compared to the previous period.

The outlook for 2017

According to ABB CEO Ulrich Spiesshofer, macroeconomic and geopolitical developments signal a mixed scenario with ongoing uncertainties. Some macroeconomic signals from the USA remain positive. He expects continued growth in China. Global markets, on the other hand, will continue to be burdened by subdued growth and increased uncertainty, for example due to Brexit in Europe and geopolitical tensions in other parts of the world. The oil price and currency translation effects are expected to continue to impact the company's results. In view of these developments and ABB's ongoing transformation, Spiesshofer expects 2017 to be a year of transition for the Group.