ABB reports double-digit revenue growth in third quarter
ABB reported on October 27 that its revenues reached US$9.38 billion in the third quarter of this year, representing a growth of 18% compared to the same quarter of last year. Orders grew by 20% to US$9.83 billion, with order backlog ending September hitting US$28.49 billion, a 7% rise. Operational EBITDA registered a growth of 24% to US$1.58 billion.
ABB said that customer investments to increase operational efficiency translated into higher orders for products such as electrical motors and robots, while capacity expansion and the need for service drove higher orders in the oil and gas sector.
The need to strengthen power distribution networks, driven in part by industrial growth in emerging markets, as well as the integration of renewable energy supplies into power grids, lifted orders in the power businesses, the company added.
“This was a solid quarter where we continued to execute well,” said Joe Hogan, ABB’s CEO. “Our cost savings efforts again more than offset price pressure in power and we continued to build the order backlog, which will support growth in the coming quarters. Growth in our earlycycle businesses slowed this quarter, partly on comparisons to the very strong rates we saw a year ago as well as weaker demand in some industry sectors.
“Looking ahead, uncertainty around global growth makes it difficult to forecast. Based on recent developments and in line with slowing economic growth, however, we expect order growth in most of our early-cycle businesses to remain near current levels until confidence in the macroeconomic outlook improves.”
Mr Hogan also held a positive outlook for his company in a longer term. “The world needs to get more from its power and industrial resources while reducing environmental impacts. ABB is in a great position, with our leading technology, broad global presence and strong balance sheet, to help our customers meet that challenge,” he explained.
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ABB reports double-digit revenue growth in third quarter
