ABB forecasts profits of one billion dollars
Swedish-Swiss engineering group ABB expects third quarter net profits to hit one billion dollars, the company announced on Monday.
The group set aside $850 million in December for likely costs from US and EU probes into alleged cartel activities, a tax dispute and asset writedowns. But it has now reduced the provisions to $380 million.
"ABB's provisions as at the end of the third quarter will be impacted primarily by changes in the provisions relating to alleged anti-competitive practices, including, but not limited to, the European Commission's power transformer decision earlier this month," it said in a statement.
The group was fined €33.75 million ($50 million) by the European Commission over anti-competitive practices in the power transformer market.
ABB added that its third-quarter earnings, which are scheduled to be announced on October 29, would be hit by an increase in charges incurred by its business in Russia.
"As a result, ABB continues reviewing the situation and assessing its business model in Russia," it added.
In July, the group posted net profits of $675 million for the second quarter.
Comments
See Also
The group set aside $850 million in December for likely costs from US and EU probes into alleged cartel activities, a tax dispute and asset writedowns. But it has now reduced the provisions to $380 million.
"ABB's provisions as at the end of the third quarter will be impacted primarily by changes in the provisions relating to alleged anti-competitive practices, including, but not limited to, the European Commission's power transformer decision earlier this month," it said in a statement.
The group was fined €33.75 million ($50 million) by the European Commission over anti-competitive practices in the power transformer market.
ABB added that its third-quarter earnings, which are scheduled to be announced on October 29, would be hit by an increase in charges incurred by its business in Russia.
"As a result, ABB continues reviewing the situation and assessing its business model in Russia," it added.
In July, the group posted net profits of $675 million for the second quarter.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.