Q1 net income up by 163 percent at ABB
- Continued strong demand for reliable power and industrial efficiency
- Record EBIT and EBIT margin (13.2%) on volume growth and operational improvements
- Cash from operations above $300 million
- ABB Lummus Global moved to discontinued operations Zurich, Switzerland, April 27, 2007 - ABB's first-quarter net income rose 163 percent to $537 million from $204 million in the same period of 2006, driven primarily by continued strong market demand and further operational improvements.
Earnings before interest and taxes (EBIT) increased 67 percent from a year earlier, to $822 million.
The EBIT margin, or EBIT as a percentage of revenues, increased to a record 13.2 percent from 9.6 percent.
Orders rose 26 percent (20 percent in local currencies), spurred by demand for reliable electricity supplies in both mature and emerging markets, as well as global industrial demand for technologies to improve energy efficiency and productivity.
Revenues rose 21 percent (15 percent in local currencies) to $6.2 billion on both high product sales in the quarter and progress on executing the strong order backlog.
Not included in the revenue comparison is $237 million in the first quarter of 2007 from the ABB Lummus Global business that was reclassified to discontinued operations (Q1 2006: $208 million).
"Our operational improvements and global reach are paying off," said Fred Kindle, ABB President and Chief Executive Officer.
"We are positioned to capture the strong worldwide demand for technologies to deliver reliable power, increase productivity and save energy.
All five divisions and every region, particularly Europe, contributed to our strong start to the year."
