Swiss power grids maker ABB posted better-than-expected third-quarter net profit on October 21 as it cut costs to offset sluggish business with oil and gas customers and amid slowing growth in China and the United States, its two biggest markets.
ABB reported net profit fell 21 percent to $577 million. Analysts had expected net profit to fall 28 percent to $527 million. Revenue fell 13 percent to $8.5 billion, missing analysts forecasts of $8.8 billion.
ABB, which makes everything from power transformers to factory robots, boosted its operating profit amid falling sales by cutting costs through a restructuring program and improved performance at its Power Systems business that builds projects like offshore wind farms, the company said in a statement.
Operational EBITA as a percentage of sales, the figure ABB uses to gauge its profitability, rose to 12.5 percent from 12 percent, according to its statement.
"We delivered a 50 basis point improvement in operational EBITA margin and higher operational earnings per share by building on our strong focus on execution, restructuring and cost measures as well as the Power Systems 'step change' program," Chief Executive Officer Ulrich Spiesshofer said.
In September, ABB cut its revenue growth target to 3 to 6 percent, down from 4 to 7 percent, and announced a "strategic review" of its low-margin power projects business, in what Spiesshofer said could be a step towards a sale of assets by the engineering group. The company's shares have fallen 18 percent this year.
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