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ABB Defied Difficult Market Environment In

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ABB Defied Difficult Market Environment In
ABB Defied Difficult Market Environment In

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"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)

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