ABB 2Q Net Income Down 31% at $406 Million --Update

Brian Blackstone

ZURICH--Swiss power and automated-equipment maker ABB Ltd. (ABB.SK) said Thursday that second-quarter profit fell 31% due to restructuring expenses, as the company also cited an uncertain global economic outlook complicated by the U.K. decision to leave the European Union.

Zurich-based ABB said net income was $406 million in the three months ended June, compared with $588 million a year earlier. Analysts had expected profit of $393 million.

Its revenue fell 5% to $8.68 billion from $9.17 billion. Analysts had expected revenue of $8.8 billion.

"Our continued focus on high-growth segments dampened the impact of challenging markets like the process industries," said ABB Chief Executive Ulrich Spiesshofer. "We are improving our cost and capital structure, as well as our productivity, and shaping a leaner, more agile ABB in a disciplined way."

The company said that economic and geopolitical developments "are signaling a mixed picture with continued uncertainty."

"Some macroeconomic signs in the U.S. remain positive and growth in China is expected to continue, although at a slower pace than in 2015," it said, adding that the outlook is also being affected by "increased uncertainties relating to Brexit in Europe, and geopolitical tensions in various parts of the world."

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(END) Dow Jones Newswires

July 21, 2016 02:14 ET (06:14 GMT)

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