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ABB forecasts profits of one billion dollars

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11:30 CEST+02:00
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.

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