ABB’s focus on strategic initiatives and profitable expansion has generated strong order growth in all regions in the third quarter.
Total orders increased up to $11.2 billion mainly due to large orders which accounted above $15 million. It included a power transmission link in Europe, a mining automation project in the Americas and a gas treatment plant in Africa.
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Orders below $15 million have increased in every region due to the implementation of ABB’s service strategy yielding a 10-percent increase in service orders in the quarter.
Company’s program for profitable organic growth has successfully created healthy order momentum across all regions. It is inspiring to see attractive large project wins and five consecutive quarters of base order growth, said, Ulrich Spiesshofer, CEO.
In PS, company achieved significant milestones in project execution, continued to de-risk the portfolio and implement a new business model for offshore wind projects. The division broke even in the quarter, added Spiesshofer.
Beginning from 2014, revenues were 6 percent lower at $9.8 billion. The operational EBITDA margin was 14.3 percent in the third quarter versus 15.7 percent in last year. The margin showed lower revenues and the result in Power Systems (PS).
Total income was $734 million and basic earnings per share were $0.32. Targeted net working capital management actions aided cash from operations, increasing around 29 percent in the first nine months.
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ABB introduced the $4-billion share buyback program, purchasing shares with a value of approximately $350 million during the quarter.
Profitable growth through penetration, innovation and expansion, aimed at growing ahead of the global economy has been driven by Siemens. Company wants to manage costs and cash as the short-term outlook for the global economy is uncertain. The entire management team is taking decisive actions in line with the Next Level strategy, added Spiesshofer.
Sabeena Wahid