ABB net income doubles in third quarter | Automation.com

ABB net income doubles in third quarter

  • Orders increase 19 percent on global growth and drive for energy efficiency
  • EBIT margin rises to 11.4 percent on higher volumes and strong execution
  • Net income doubles to $397 million, lifting net margin to 6.6 percent

    Zurich, Switzerland, Oct. 27, 2006 - ABB's third-quarter net income more than doubled to $397 million from $188 million in the same period of 2005, helped by higher volumes and strong project execution.

    Earnings before interest and taxes (EBIT) increased 48 percent to $686 million from $463 million a year earlier and the EBIT margin, or EBIT as a percentage of revenues, increased to 11.4 percent from 8.3 percent.

    Orders rose 19 percent (16 percent in local currencies), spurred by a number of factors, such as continued strong global industrial demand, the need for reliable power supplies to sustain growth in emerging markets, and efforts to offset higher oil prices by improving energy efficiency and productivity.

    "We are benefiting from our leading market positions in power technology and industrial automation," said Fred Kindle, ABB President and Chief Executive Officer. "The strong order development reflects investments by our customers to raise productivity and build modern energy-efficient power networks. Improvements in operational performance and project management are clearly showing up in our earnings."

    Please click here to read full release: www.abb.com/cawp/seitp202/93d95bdcccbf93adc125720d00577426.aspx
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