ABB forecasts profits of one billion dollars
AFP/The Local · 19 Oct 2009, 11:30
Published: 19 Oct 2009 11:30 GMT+02:00
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.