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Swedish ABB profits soar in second quarter

Swiss-Swedish engineering giant ABB said on Thursday that its net profit soared by 16 percent in the second quarter to $763 million, despite a fall in orders owing to restructuring.

Swedish ABB profits soar in second quarter

Turnover at the group, a top player in the global electrical engineering sector, meanwhile rose by six percent to $10.2 billion, ABB said in a statement.

While the sales figure was in line with forecasts by analysts polled by financial news agency AWP, ABB’s profit fell short of their predicted $782 million.

ABB said that its order book shrank by seven percent in the second quarter to $9.3 billion, owing to a shake up in its Power Systems division.

“Orders were down as the strategic realignment in Power Systems launched at the end of last year started to take shape with our focus on greater project selectivity and higher profitability,” the group’s outgoing chief executive Joe Hogan said.

“Delays in the award of large orders, which is linked to the ongoing global macroeconomic uncertainty, also impacted orders this quarter. But our underlying demand drivers remain sound,” he added, saying ABB’s outlook remained unchanged.

ABB sparked surprise in the business world in May when it announced that Hogan would be stepping down for personal reasons.

ABB insider Ulrich Spiesshofer is due to take the helm on September 15.

AFP/The Local/og

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BUSINESS

Swedish retailer H&M sees profits slump after Russia exit

Swedish fashion retailer H&M reported a sizeable drop in third-quarter profit on Thursday following its decision to leave the Russian market.

Swedish retailer H&M sees profits slump after Russia exit

The world’s number two clothing group is among a slew of Western companies that have exited Russia following Moscow’s invasion of Ukraine.

H&M paused all sales in the country in March and announced in July that it would wind down operations, although it would reopen stores for “a limited period of time” to offload its remaining inventory.

The company said Thursday its net profit fell to 531 million kronor ($47 million) in the third quarter, down 89 percent from the same period last year. “The third quarter has largely been impacted by our decision to pause sales and then wind down the business in Russia,” chief executive Helena Helmersson said in a statement.

The group said in its earnings statement that it would launch cost-cutting measures that would result in savings totalling two billion kronor.

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