ABB Beat 2Q Expectations But Adjusted Earnings, Revenue Fell

   By Kim Richters 
 

ABB Ltd. said Wednesday that adjusted earnings and revenue for the second quarter declined due to the coronavirus pandemic, but beat analysts' expectations.

The Swiss engineering company said its operational earnings before interest, taxes and amortization fell to $651 million for the period from $825 million a year earlier.

Net profit jumped to $319 million from $64 million for the year-earlier period, when it was dragged by charges relating to the sale of its solar-inverter business.

Quarterly revenue declined 14% to $6.15 billion, while orders for the quarter fell 18% to $6.05 billion.

Analysts had forecast ABB's second-quarter revenue to be $5.61 billion, operational Ebita at $446 million and net income at $128 million, according to a consensus provided by the company.

For the third quarter, ABB expects some improvement in year-on-year order decline and revenues to remain strongly hit on year by the pandemic. Revenue could recover slightly in the last 2020 quarter at best, it said.

"A lot of uncertainty remains and we still see some challenging quarters ahead," the company's CEO Bjorn Rosengren said.

Write to Kim Richters at [e-mail]

(END) Dow Jones Newswires

July 22, 2020 01:34 ET (05:34 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.