Description
ABB Group CEO Spiesshofer said: “In the second quarter, ABB”s four major divisions and three major regions all achieved order growth. By continuing to improve production efficiency, we promoted profit growth and
achieved two double-digit gains in operating earnings per share. digit growth. At the same time, we completed the acquisition of GE Industrial Systems within the promised deadline and began to advance the integration pace at full speed with our new colleagues.”
— Order volume increased by 8%, with all business units and regions achieving growth
— Basic orders increased by 9%, with all business units and regions achieving growth
— Sales revenue increased by 1%
— The order-to-bill ratio is 1.07, and all business units exceed 1.
— Operating EBITDA margin increased 60 basis points to 13%
— Net profit of $572 million, up after excluding gains from the 2017 divestiture of the cable business
— Cash flow from operations is -USD 518 million, and cash flow is expected to be sufficient throughout the year
He further said: “ABB”s four major business divisions are striving to move towards the world”s top efficiency level through self-discipline and unremitting execution. These results also show that the company transformation we have promoted in the past few years has paid off.”
key data
short term outlook
Macroeconomic indicators in Europe and the United States are trending upward, and the Chinese market is also expected to continue to grow. Overall, global markets maintain growth, but uncertainty remains high in parts of the world
. Changes in oil prices and exchange rates will continue to have an impact on the company”s performance.
Group results for the second quarter of 2018
Order amount
This quarter’s order volume increased by 8% year-on-year (14% in US dollars), and the four major business divisions and three major regions achieved overall growth. Base orders (orders under US$15 million) increased by 9% (14% in US dollars), with
growth across all divisions and regions. Large orders accounted for 7% of total orders, compared with 8% in the same period in 2017. The rich range of ABB Ability™ digital solutions contributed significantly to the growth of orders in this quarter.
The order-to-bill ratio increased to 1.07 at the end of the second quarter, compared with 0.99 in the same period last year.
Under the pressure of higher growth in the same period last year, the service business” order volume increased by 2% in this quarter (an increase of 5% in US dollars), and the order volume accounted for 19% of the company”s total orders, compared with 20% in the same period last year.
ABB further enriched its business portfolio through the acquisition of B&R, driving a 3% net increase in orders. The year-on-year increase in the U.S. dollar exchange rate brought a 3% increase in order volume.
market Overview
Market demand in ABB”s three major regions showed strong performance this quarter:
Total orders in the European market increased by 10% year-on-year (up 22% in US dollars), with increases in Germany, Italy, the United Kingdom, Norway, Spain and France greater than the decreases in orders from Sweden, Finland and Switzerland. Underlying orders in
the region increased by 12% (up 24% in US dollar terms), with Italy and the UK contributing prominently.
Total orders in the Americas market increased by 7% (up 7% in US dollars). Among them, orders from the United States, Canada and Mexico increased. Underlying orders increased 7% (up 7% in U.S. dollars). On a comparable basis, U.S. order volume increased by 6% (increased
by 7% in US dollar terms), and underlying orders increased by 7% (increased by 8% in US dollar terms).
Total orders in Asia, the Middle East and Africa increased by 7% (11% in US dollar terms), with strong demand for orders from China, India and the United Arab Emirates. Underlying orders grew 7% (+12% in US dollar terms), with increases in China, India and Australia outweighing
declines in orders from South Korea and South Africa. China”s order volume increased by 20% (up 29% in US dollars), and underlying orders increased by 23% (up 32% in US dollars).
The demand growth trends in ABB’s main customer market areas are as follows:
Excitation system ABB module 3HNA024871-001
Excitation system ABB module 3HNA024203-001
Excitation system ABB module 3HNA023282-001
Excitation system ABB module 3HNA023200-001
Excitation system ABB module 3HNA018573-001
Excitation system ABB module 3HNA018564-001
Excitation system ABB module 3HNA016493-001
Excitation system ABB module 3HNA015771-001
Excitation system ABB module 3HNA015495-001/01
Excitation system ABB module 3HNA015162-001
Excitation system ABB module 3HNA015149-001
Excitation system ABB module 3HNA015149-001
Excitation system ABB module 3HNA013638-001/03
Excitation system ABB module 3HNA012283-001
Excitation system ABB module 3HNA011999-001
Excitation system ABB module 3HNA011788-001/01
Excitation system ABB module 3HNA011334-001
Excitation system ABB module 3HNA011334-001
Excitation system ABB module 3HNA011333-001
Excitation system ABB module 3HNA010906-001
Excitation system ABB module 3HNA010598-001/03
Excitation system ABB module 3HNA010598-001 DSQC378B
Excitation system ABB module 3HNA009724-001
Excitation system ABB module 3HNA009609-001
Excitation system ABB module 3HNA007885-002
Excitation system ABB module 3HNA007719-001
Excitation system ABB module 3HNA007073-001/03
Excitation system ABB module 3HNA007022-001
Excitation system ABB module 3HNA007022-001
Excitation system ABB module 3HNA007022
Excitation system ABB module 3HNA006570-001
Excitation system ABB module 3HNA006492-001/04
Excitation system ABB module 3HNA006330-001
Excitation system ABB module 3HNA006262-001
Excitation system ABB module 3HNA006149-001
Excitation system ABB module 3HNA006149-001
Excitation system ABB module 3HNA006146-001
Excitation system ABB module 3HNA006145-001
Excitation system ABB module 3HNA006144-001/03
Excitation system ABB module 3HNA006144-001/03
Excitation system ABB module 3HNA006144-001
Excitation system ABB module 3HNA004958-001
Excitation system ABB module 3HNA002064-001
Excitation system ABB module 3HNA001625-001
Excitation system ABB module 3HNA001625-001
Excitation system ABB module 3HNA000512-001
Excitation system ABB module 3HB012961R0001
Excitation system ABB module 3HAC9710-1
Excitation system ABB module 3HAC8627-1
Excitation system ABB module 3HAC8593-1
Excitation system ABB module 3HAC8500-6
Excitation system ABB module 3HAC8409-1
Excitation system ABB module 3HAC8311-2
Excitation system ABB module 3HAC8280-1
Excitation system ABB module 3HAC8278-1/04
Excitation system ABB module 3HAC8185-4
Excitation system ABB module 3HAC8085-2
Excitation system ABB module 3HAC7998-8
Excitation system ABB module 3HAC7998-7
Excitation system ABB module 3HAC7970-1
Excitation system ABB module 3HAC7681-1
Excitation system ABB module 3HAC7681-1
Excitation system ABB module 3HAC7664-1
Excitation system ABB module 3HAC7457-3
Excitation system ABB module 3HAC7344-1
Excitation system ABB module 3HAC7344-1
Excitation system ABB module 3HAC7310-1
Excitation system ABB module 3HAC7149-1
Excitation system ABB module 3HAC6877-1
Excitation system ABB module 3HAC6792-1
Excitation system ABB module 3HAC6762-1
Excitation system ABB module 3HAC6696-1
Excitation system ABB module 3HAC6449-1
Reviews
There are no reviews yet.