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ABB hit by downturn in the energy sector

The oil market and the shadow of last year hover above the industrial group's second quarter, which in spite of a significant setback still finished slightly above expectations.

Photo: ABB

Swiss-Swedish ABB finished the second quarter of the year with an order intake of USD 8,996 million, a revenue of USD 9,165 million and a bottom line of USD 588 million. These figures represent a decline of 15, 10 and 8 percent, respectively, compared to the same period last year. However, the second quarter 2014 declined just ahead of the plummeting oil price, which means that the latest interim report still exceeds analysts' expectations of USD 572 million dollars and a revenue of around USD 9 billion.

At a glance, the most disappointing figure in the interim report is the cash flow from operating activities, which declined one third, from USD 888 million to USD 598 million, representing a combined 23 percent drop in the first half of the year. ABB attributes part of this major setback to the fact that numerous orders were secured in the final days of the quarter, as well as to higher tax costs.

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