By Pietro Lombardi
ABB Ltd. posted better-than-expected revenue and adjusted earnings for the third quarter, helped by a strong recovery in China and cost-savings efforts, and despite the continued impact of the coronavirus pandemic.
The Swiss engineering company said Friday that operational earnings before interest, taxes and amortization--an adjusted metric that measures income from operations--was $787 million in the third quarter, down 2% on year.
Net profit for the quarter, which includes gains on the sale of the company's Power Grids business to Hitachi Ltd., was $4.53 billion, compared with $515 million a year earlier.
Revenue fell 4% to $6.58 billion, while orders declined 9% to $6.11 billion.
Analysts had forecast ABB's third-quarter revenue at $6.30 billion, operational Ebita at $689 million and net income at $4.94 billion, according to a consensus provided by the company.
"ABB expects fourth-quarter order and revenue growth rates to remain challenged on a year-on-year basis and revenue growth rates to decline sequentially," it said.
Fourth-quarter operating margins should grow on year but decline from the third quarter.