"The company delivered a robust performance in the third quarter, despite the weaker economic environment affecting some...

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In the third quarter of 2019, ABB generated sales of USD 6.9 billion (previous year: USD 7.1 billion). This represents a decline of three percentage points. Order intake also fell by 3 % year-on-year to USD 6.7 billion (previous year: USD 6.9 billion). Consolidated profit fell by 15% to USD 515 million.

... has impacted customer markets, particularly the robotics and automation sector," said Peter Voser, Chairman of the Board of Directors and CEO of ABB.

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Commenting on the corporate strategy, Peter Voser, Chairman of the Board of Directors and CEO of ABB, said: "We are sticking to our long-term growth strategy and are consistently focusing on effective cost management in the face of declining demand. At the same time, we are pressing ahead with our transformation agenda. We are resolutely implementing our strategy with a corporate culture that motivates all employees to take responsibility and deliver top performance."

The business divisions in detail

ABB generated solid earnings in the 'Electrification' and 'Drive Technology' business units in the third quarter of 2019, while the 'Robotics & Factory Automation' business unit was exposed to difficult market conditions.

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The Industrial Automation division recorded the highest increase in incoming orders in the third quarter of 2019: It grew by 3% (1% in US dollars). The strongest order growth was recorded in the AMEA and Americas regions, driven by solid demand from the process industry, including the oil and gas sector. In contrast, order intake in conventional power generation was subdued. The order backlog remained stable (down 4% in US dollars). Sales fell by 2% (3% in US dollars).

In the 'Electrification' division , order intake rose by 1% (down 1% in US dollars), as brisk demand in Europe compensated for the weak order situation in China. This was driven by an improvement in major orders compared to the same quarter of the previous year - with brisk demand for distribution solutions and building technology. Sales increased by 1% (decline of 1% in US dollars).

Order intake in the 'Drive Technology' division grew by one percentage point (down 1% in US dollars). In regional terms, ABB recorded solid order intake in Europe, slight growth in the AMEA region and a decline in the Americas. The order backlog increased by 4 % (1 % in US dollars). Sales increased by 3 % (1 % in US dollars).

Order intake in the 'Robotics & Factory Automation' segment fell by 16% (18% in US dollars). According to ABB, this is due to the comparison with the strong prior-year quarter and the difficult market environment in all regions. In the traditional automotive and supplier industry, demand for robotics remained very subdued, while the machine automation sector was less affected. The order backlog increased by 2% (decline of 2% in US dollars). Sales fell by 3% (-6% in US dollars) with strong order backlog processing.