• Sweden's news in English
 
app_header_v3

Sweden's ABB sees net profit shrink 18 percent

AFP · 29 Apr 2014, 13:56

Published: 29 Apr 2014 13:56 GMT+02:00

During the first three months of the year, ABB, a top player in the global electrical engineering sector, saw its net profit plunge to $544 million.
   
That number, which fell far short of the analyst expectations, was dragged down by $333 million in depreciation and amortization during the quarter, including $100 million linked to acquisitions.
   
ABB, which counts Germany's Siemens and Alstom of France as its main competitors, said its sales fall 3.0 percent during the January-March period to $9.4 billion, as overall orders slid 1.0 percent and large orders plunged 12 percent.
   
Analysts polled by the AWP financial news agency had expected the company to rake in $738 million in net profit and $9.7 billion in sales.
   
Following the earning's announcement, ABB saw its share price tumble 6.9 percent to 21.46 Swiss francs a piece in late morning trading, as the Swiss stock exchange's main SMI index swelled 0.53 percent.
   
"ABB will need to show its ability to take the right measures to satisfy investors again," J. Safra Sarasin analyst Oskar Schenker said in a note, decrying the weak order bookings, and also poor performance in ABB's power system's unit.
   
Company chief executive Ulrich Spiesshofer acknowledged that the unit, which saw sales plummet 22 percent during the quarter, was a disappointment.
   
Story continues below…
"We are disappointed with the continued poor performance in Power Systems and are rigorously executing actions that go well beyond the previously-announced strategic realignment," he said in the earnings statement.
   
He said the company had already launched "a number of corrective decisions," including management changes and a halt in bids for solar engineering, procurement and construction projects.
   
He warned though that the long-planned transformation of the unit would take longer than originally expected, but stressed: "we remain confident that the outcome will be a strong and competitive business."

Your comments about this article

Today's headlines
Police resources back to normal after terror threat
The headquarters where Säpo, Sweden's security police is based. Photo: Fredrik Sandberg/TT

Swedish police say they're no longer deploying extra resources following a reported terror threat in the run-up to Eurovision.

Why this fearless woman is the talk of Sweden
Photo: David Lagerlöf/Expo/TT

Swedes are calling this picture an instant icon.

Opinion
'Swedes, please give your sperm a purpose'
File picture of an embryo. Photo: Richard Drew/AP

Swedish men should stop jerking off in public places and start donating sperm to help single women have babies, argues Stockholm-based writer Matilda Karlsson.

Petrol firm tries to woo women to pumps with new name
A Statoil station in Enköping. Photo: Fredrik Strandberg/TT

A Statoil petrol station in Stockholm today becomes the first in Europe to get a makeover.

Half of Swedes support law banning begging
A man begs for money on Hamngatan in central Stockholm. Photo: Fredrik Sandberg/TT

Only one political party in Sweden wants a ban on begging, but half the population shares their view, a new survey shows.

Presented by Stockholm University
Why Stockholm attracts so many successful researchers
Photo: Stockholm University

Thousands of outstanding researchers from across the globe have chosen to make Stockholm University their home and hub. What is it that attracts them? We asked.

Stockholm taxi drivers 'help clients find prostitutes'
A Taxi Stockholm car driving in the capital. Photo: Tomas Oneborg/SvD/TT

Drivers from Stockholm’s biggest taxi firm are suspected of helping fuel the sex trade despite the purchase of sex being illegal in Sweden.

Eurovision 2016
Eurovision set for US as gay channel announces live show
Eurovision flags flying in Stockholm this week. Photo: Anders Wiklund/TT

Now you can watch Eurovision in the US too.

'Isis' kids get taken into care in central Sweden
File picture of children in the middle east. Photo: AP /Manu Brabo

Three siblings authorities feared could be forced to go abroad to get married or fight alongside extremists have been taken into care in central Sweden.

Eurovision 2016
Palestine envoy angry at 'insulting' flag ban
The Palestinian flag (left) was included on the same banned list as that of Islamic State (right)

The Palestinian Ambassador to Sweden has waded into the row over a Eurovision ban on the Palestinian flag calling it "insulting" and "a big mistake".

Sponsored Article
The Inner Circle: Stockholm's secret dating scene
National
Sweden set for sunny weekend
Sponsored Article
Eat, learn, live: unforgettable holidays in France
Fastighetsbyrån
Gallery
Property of the week: Vollsjö, Sjöbo
Features
How to be a cool Swede during a hot summer
Blog updates

29 April

Editor’s blog, April 29th (The Local Sweden) »

"Hello readers, Relations between Sweden and Russia went from slightly strained to full-on James Bond this…" READ »

 

18 April

A day as a guard (The Diplomatic Dispatch) »

"Life as an Ambassador. Driven around in the Jaguar. Visits all planned so you go straight…" READ »

 
 
 
Sponsored Article
Kista: The best office space in Sweden?
Gallery
People-watching: April 29th - May 1st
Sponsored Article
'Swedes must realize only soft power can defeat radicalism'
Analysis & Opinion
Why Sweden's fretting about Brexit
National
INTERVIEW: Swedish police officer 'beat me up and used racial slurs'
Gallery
People-watching: April 27th
Sponsored Article
How to launch your international career
National
Öresund bridge border checks net record number of drink drivers
Sponsored Article
Becoming an expat: where to start
National
Swedes bid farewell to iconic Volvo
Gallery
Property of the week: Enköping
Sponsored Article
Why international researchers love to call Malmö home
Gallery
People-watching: April 22nd-24th
Sponsored Article
How Stockholm startups help new employees feel at home
Politics
Could Brits in Europe stop Brexit?
National
The first official picture of Sweden's new royal Prince Alexander
Sponsored Article
‘Life in Stockholm’s suburbs is better than people realize’
National
Sweden's Sami reindeer still live in the shadow of Chernobyl
Sponsored Article
'I may work at a Swedish company, but we’re global'
Finest
Gallery
People-watching: April 20th
Sponsored Article
'A sustainable Sweden must embrace diversity'
National
Why was a Nazi flag hoisted in a Swedish town on Hitler's birthday?
Sponsored Article
What's the best way for expats to transfer money abroad?
National
How did Sweden's deputy PM get in trouble over New York comments?
Sponsored Article
Sigtunaskolan: 'The best of what Sweden has to offer'
Finest
Gallery
People-watching: April 16th-17th
Sponsored Article
'I may work at a Swedish company, but we’re global'
Culture
Sweden finally axes historic dancing ban
Sponsored Article
The Inner Circle: Stockholm's secret dating scene
International
Have you phoned Sweden yet?
Finest
Gallery
People-watching: April 13th
National
Is booze going up in Sweden?
National
How Sweden's fake 'smombie' traffic sign is being used for real
3,275
jobs available
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
psdmedia.se