Table of contents:
- Power grids division offsets declining numbers
- ABB expects 2017 to be a transition year with subdued growth
- ABB implements next-level strategy
Video: ABB Defied Difficult Market Environment In
"Thanks to the strong performance of the Power Networks Division, we grew in the fourth quarter despite the difficult market environment," explains Ulrich Spiesshofer, CEO of ABB. With ABB Ability, a range of digital solutions and services, the group reports good growth momentum. "In 2016, we made considerable progress in the digital transformation of our company," Spiesshofer continues.
Power grids division offsets declining numbers
Order intake fell by 5% compared to the 2015 financial year. Base orders declined 2%, while large orders decreased 24% compared to high order intake in 2015. Service and software orders grew 3% overall and contributed 18.4% to total order intake.
However, sales remained constant, reports the group, as sales growth in the power grids and electrification products divisions compensated for the declining numbers in the industrial automation and drives division and the process automation division. Sales in the service and software business rose overall by 3% to 17.8% of total Group sales.
ABB expects 2017 to be a transition year with subdued growth
The economic and geopolitical developments worldwide point to continued uncertainties in the coming year. ABB sees a mixed scenario, but expects continued growth for China. The global markets are likely to be further burdened by the subdued growth and increased uncertainty. The company expects the oil price and currency translation effects to continue to impact earnings. ABB therefore assumes that 2017 will be a transition year for the group.
ABB implements next-level strategy
ABB continued to pursue its next-level strategy in 2016. The main factors for the higher profitability of the group were the continued cost savings and productivity measures.
Net income was $ 1.96 billion in fiscal 2016, an increase of 2% over the previous period. Operating income per share improved 4% currency adjusted to $ 1.29. In fiscal 2016, ABB distributed $ 2.9 billion in cash to shareholders through the dividend dividend reduction and share buyback program. (kj)
mobility
The first flying car should come in 2018
Popular by topic
World Robotics Report Reports Growth Despite Difficult Environment
While robotics growth is stagnating in China and Korea, installations in the United States and Europe continue to grow. However, the forecasts for the current year are modest. More analyzes of the current World Robotics Report
Difficult Economic Environment - Pilz Grows Moderately
Pilz reports moderate growth of 2.1% to EUR 345 million for the past financial year. The company is optimistic about the current year 2019
Tips For Dealing With Difficult Employees
Some employees cause unrest in the team. Although they may be technically competent, their colleagues perceive them as pea counters or even aggressively. HR specialist SumTotal gives tips on how best to deal with difficult characters and at the same time to uncover their potential in the best possible way
Fatigue-free Welding Even In Difficult Positions
EWM is expanding its MIG / / MAG welding torch range to include the PM series for professional users
Despite The Difficult Environment: Mechanical Engineering Increases Exports Slightly
The machine builders in Germany were able to increase their exports slightly in a difficult year. In total, machines and systems were sold abroad in 2015 for more than 155 billion euros. This was an increase of 2.6% compared to the previous year (2014: almost 152 billion euros). After deducting the price increases, this means a real plus of 0.9%. The fourth quarter brought only nominal export growth of 1.1% (real minus 0.3%). The VDMA has communicated this
