Abb Share Discussion Threads

[ariane] 18/5/2007 16:28

ABB refuses comment on 'market rumours' but confirms eyeing acquisitions


Zurich (Thomson Financial) - Swedish-Swiss engineering group ABB Ltd refused
to comment on talk it might be preparing a takeover bid for French electrical
goods manufacturer Legrand but reiterated that it is looking for acquisition
targets.
Contacted by Thomson Financial, a spokesman for ABB said the company had "no
comment on market rumours."
However, he stressed that ABB had already said it was looking for potential
targets as part of its strategy.
"The CEO said at the February presentation of our full year results that we
are looking for acquisition and takeover targets but will take a disciplined
approach."
"He also said we are looking at all geographical areas but that the highest
probability is in Asia or the Americas," the spokesman added.
Earlier today, shares in Legrand rose sharply as rumours spread that ABB and
Siemens are each considering takeover bids for the French electrical supplies
maker, with analysts judging the scenarios plausible in view of potential
industrial synergies.

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[ariane] 18/5/2007 14:04

Legrand denies claims of ABB, Siemens bid; reaffirms standalone strategy


PARIS (Thomson Financial) - French electrical equipment manufacturer Legrand
dismissed talk that ABB and Siemens are each considering takeover bids for the
group, calling the claims "rumours".
Contacted by Thomson Financial News, a spokesman for the company said
"Legrand's outlook as a standalone company is excellent, and our majority
shareholders believe in it."
"These claims are rumours," he continued.
Legrand shares rose sharply midmorning on the back of the talk, and at 2.15
pm were trading up 1.32 eur or 5.07 pct at 27.37.

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[ariane] 18/5/2007 11:51

ABB wins 35 mln usd order to secure power supply in Norway


ZURICH (Thomson Financial) - ABB Ltd said it has won a 35 mln usd order from
Norway's state-owned transmission system operator Statnett for an installation
to improve capacity and reliability of power supplies in Norway.

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[sheeneqa] 10/5/2007 09:42

Zurich, Switzerland, May 10, 2007 - ABB today announced that Dinesh Paliwal,
President, Global Markets and Technology and a member of the Group Executive
Committee, will leave ABB at the end of June to become chief executive of
U.S.-based Harman International Industries.

"Dinesh Paliwal had an outstanding and long global career within ABB and he made
very strong contributions as a key member of the top management team to move ABB
forward," said ABB President and CEO Fred Kindle.

"The Executive Committee and his ABB colleagues regret his departure and we will
miss Dinesh's energy and professionalism and wish him well in his new role,"
Kindle added.

In 1985, Paliwal, an Indian and U.S. citizen, joined AccuRay Corporation as a
systems engineer and project manager. This company was later acquired by ABB. As
his career progressed, he has held a wide variety of roles and responsibilities
which span ABB's businesses and regions.

Since 2001, Paliwal has been a member of the Executive Committee, where he was
at first responsible for the Automation Technologies division and since 2006 has
served as President, Global Markets and Technology.

In 2004, Paliwal assumed additional responsibility as Chairman and CEO of ABB in
North America. He also held the chairmanship of Lummus Global since 2006 and ABB
India, since 2004.

ABB has initiated a search and will announce his succession in due course.

[waldron] 08/5/2007 07:10

Abb AGM Statement


RNS Number:1837W
ABB Ltd
08 May 2007





ABB Ltd


AGENDA AND RESOLUTIONS


from the Annual General Meeting of Shareholders

held on May 3, 2007, 10.00

in the "Messe Zurich", Zurich-Oerlikon / CH


___________________________________________________________________



AGENDA AND RESOLUTIONS


1. Reporting for Fiscal Year 2006
(Reporting only).


2. Approval of the Annual Report, the Consolidated Financial Statements,
and the Annual Financial Statements for 2006

The shareholders approve the Annual Report, the Consolidated Financial
Statements, and the Annual Financial Statements for 2006.


3. Discharge of the Board of Directors and the Persons entrusted with
Management

The shareholders discharge the members of the Board and the persons entrusted
with Management for the fiscal year 2006.


4. Appropriation of available earnings

The shareholders approve the proposal of the Board of Directors,

* to release CHF 300,000,000 of the other reserves, to retained earnings,

* to distribute a dividend of CHF 0.24 gross per registered share, whereas
all treasury shares held by ABB at the record date shall not be entitled to
receive a dividend,

* to carry forward the remaining profit available to the General Meeting.



5. Amendment to the Articles of Incorporation: Creation of authorized
share capital

The shareholders approve with the required majority of two thirds of the votes
represented, and thereby also with the absolute majority of the par value of
shares represented, the creation of authorized share capital and the amendment
of the Articles of Incorporation with the following new Article 4ter:

Article 4ter

Authorized Share Capital

1 The Board of Directors shall be authorized to increase the
share capital in an amount not to exceed CHF 500,000,000
through the issuance of up to 200,000,000 fully paid registered
shares with a par value of CHF 2.50 per share by not later than
May 3, 2009. Increases in partial amounts shall be permitted.

2 The subscription and acquisition of the new shares, as well as
each subsequent transfer of the shares, shall be subject to the
restrictions of art. 5 of these Articles of Incorporation.

3 The Board of Directors shall determine the date of issue of new
shares, the issue price, the type of payment, the conditions
for the exercise of pre-emptive rights, and the beginning date
for dividend entitlement. In this regard, the Board of
Directors may issue new shares by means of a firm underwriting
through a banking institution, a syndicate or another third
party with a subsequent offer of these shares to the
shareholders. The Board of Directors may permit pre-emptive
rights that have not been exercised to expire or it may place
these rights and/or shares as to which pre-emptive rights have
been granted but not exercised, at market conditions or use
them for other purposes in the interest of the Company.

4 The Board of Directors is further authorized to restrict or
deny the pre-emptive rights of shareholders and allocate such
rights to third parties if the shares are to be used:
a) for the acquisition of an enterprise, parts of an
enterprise, or participations, or for new investments, or, in
case of a share placement, for the financing or refinancing of
such transactions; or
b) for the purpose of broadening the shareholder constituency
in connection with a listing of shares on domestic or foreign
stock exchanges.


6. Elections to the Board of Directors

The shareholders re-elect the following persons - with the exception of Jurgen
Dormann who didn't stand for re-election - as members of the Board of Directors
for a further period of one year, i.e. until the General Meeting 2008:

*Roger Agnelli
*Louis R. Hughes
*Hans Ulrich Marki
*Michel de Rosen
*Michael Treschow
*Bernd W. Voss
*Jacob Wallenberg


The shareholders elect as new member of the Board of Directors for a period of
one year, i.e. until the General Meeting 2008:

*Hubertus von Grunberg


7. Election of the Auditors, Group Auditors and Special Auditors

The shareholders elect Ernst & Young AG as auditors and Group auditors and OBT
AG as special auditors for the fiscal year 2007.


This is a translation of the original German version. In case of any
discrepancy, the German version shall prevail.

For the minutes:


Zurich, May 3, 2007 Georg Matiaska
Chief Compliance Officer



This information is provided by RNS
The company news service from the London Stock Exchange

END
AGMARMJTMMJMBBR

[sheeneqa] 08/5/2007 07:06

. Reporting for Fiscal Year 2006
(Reporting only).


2. Approval of the Annual Report, the Consolidated Financial Statements,
and the Annual Financial Statements for 2006

The shareholders approve the Annual Report, the Consolidated Financial
Statements, and the Annual Financial Statements for 2006.


3. Discharge of the Board of Directors and the Persons entrusted with
Management

The shareholders discharge the members of the Board and the persons entrusted
with Management for the fiscal year 2006.


4. Appropriation of available earnings

The shareholders approve the proposal of the Board of Directors,

* to release CHF 300,000,000 of the other reserves, to retained earnings,

* to distribute a dividend of CHF 0.24 gross per registered share, whereas
all treasury shares held by ABB at the record date shall not be entitled to
receive a dividend,

* to carry forward the remaining profit available to the General Meeting.

[waldron] 05/5/2007 10:07

ABB elects new board member, approves dividend

Shareholders of ABB, the leading power and automation technology group, elected Hubertus von Grünberg to the board of directors at the group's annual general meeting in Zurich.

Von Grünberg will take over as Chairman from Jürgen Dormann, who retired from the board after completing his latest term. The seven remaining members of the board who stood for another term were all re-elected.

Shareholders also approved the payment of a dividend of CHF 0.24 per share for 2006, twice the payment made for 2005. The shares will trade without the right to the 2006 dividend from May 8, 2007.

A total of 1,403 shareholders attended the annual general meeting, representing 46.4 percent of the total share capital entitled to vote.

ABB also announced that it will create a foundation with total funding of 20 million Swiss francs ($16.6 million) to sponsor talented and needy students in engineering and natural sciences. The ABB Jürgen Dormann Foundation for Engineering Education will support graduate students in engineering and natural science with scholarships for a maximum of five years each.

[waldron] 03/5/2007 11:36

ABB to issue 'ambitious' new targets in upcoming strategic review


ZURICH (Thomson Financial) - ABB Ltd plans to set itself some "ambitious"
new targets when it publishes its strategic review in autumn, chief executive
Fred Kindle said, confirming earlier comments.
In a speech set for today's AGM, Kindle said that ABB has achieved almost
all the targets it had originally planned to reach until 2009.
Following the presentation of first-quarter results last week, the
Swedish-Swiss engineering group announced it is likely to raise its mid-term
targets when it completes its upcoming strategic review.
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[tanners] 02/5/2007 23:00

Is this the football thread?

[waldron] 02/5/2007 09:30

South Africa: Riding Power Wave





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Business Day (Johannesburg)

May 2, 2007
Posted to the web May 2, 2007

Johannesburg

POWER and automation technologies company ABB's plan to conquer the world is falling into place as the group rides high on world demand for power. Strong demand for reliable power saw the group's first-quarter net income more than double to $537m from $204m in the corresponding period last year. ABB's order book for SA has grown to a record R3,6bn, thanks to expansion of electrical power infrastructure.

Orders include the R150m upgrade to Eskom's Kriel and Grootvlei plants and a R130m refurbishment of one of Anglo Platinum's mines.


Global orders for the first quarter rose 26%, 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. This pushed revenues up 21% to $6,2bn from $4,8bn previously, on both high product sales in the quarter and progress on executing the strong order backlog.

ABB president and CEO Fred Kindle says the group is well positioned to capture the strong worldwide demand for technologies to deliver reliable power, increase productivity and save energy.

Carlos Pone, CEO of ABB SA, says the company's local power business was boosted by record orders for power and distribution transformers, medium- and high-voltage equipment, substations and transmission-line protection equipment.

Eskom is planning to invest R97bn over the next five years in establishing new generation capacity, and this should be music to Pone's ears.

The group revenues for last year were R2,7bn, up 11% from the previous year, and were the highest achieved by the company in the past 14 years.

Relevant Links

Southern Africa
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Energy
Company News
Economy, Business and Finance



It is estimated that SA power demand will grow at an average 4,4% a year, requiring about 47252MW of new capacity, which is more than double the total existing capacity, to satisfy demand between now and 2025.

International analysts have warned that power cuts will soon become a global disaster. China's energy sector is said to be falling behind despite rapid industrial growth. ABB orders in Europe rose 31%, reflecting both power infrastructure investments and overall economic strength. Order growth was strongest in Germany, Spain, Italy and Russia.

Kindle says the volume of large orders of more than $15m rose 36% while base orders of less than $15m were up 25%.

[waldron] 30/4/2007 15:46

Dividend information

For 2006, ABB's Board of Directors will propose a dividend of CHF 0.24 per share. The proposal is subject to approval by shareholders at the company's annual general meeting on May 3, 2007 in Zurich, Switzerland. Should the proposal be approved, the ex-dividend date would be May 8, 2007.

[waldron] 30/4/2007 15:15

ABB upgraded to "buy"

Friday, April 27, 2007 9:24:52 AM ET
Dresdner Kleinwort Wasser.

LONDON, April 27 (newratings.com) - Analysts at Dresdner Kleinwort upgrade ABB Ltd (ABB.NYS) from "hold" to "buy." The target price has been raised from CHF22 to CHF27.

In a research note published this morning, the analysts mention that the company has posted stellar 1Q results, with EBIT significantly ahead of the consensus. There is significant upside to the EPS estimates, in view of the 1Q margins that expanded by 360bps y/y and were ahead of the consensus, Dresdner Kleinwort adds.

[waldron] 28/4/2007 16:27

AFX News Limited
ABB CEO Kindle says mid-term targets likely to be raised at next review
04.26.07, 6:10 AM ET




ZURICH (Thomson Financial) - ABB Ltd is likely to raise its medium-term targets when it completes its upcoming strategic review, likely to be presented in early September, chief executive Fred Kindle said in a conference call.

'It (is) likely there is going to be some increase in mid-term targets,' Kindle said, noting markets would not understand if ABB (nyse: ABB - news - people ) would fail to do so.

Kindle again said ABB is confident regarding the rest of the year even though order intake is likely to slow somewhat given strong year earlier earlier figures.

ABB earlier today reported a forecast-beating first quarter net profit of 537 mln usd, up from 204 mln the year before, driven by continued strong demand and further operational improvements.







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[waldron] 27/4/2007 20:11

extract

ABB Ltd. (ABBN VX), the world's biggest builder of electricity networks, climbed 20 centimes, or 0.8 percent, to 24.55 francs, extending yesterday's 5 percent gain. Bank Vontobel raised its price estimate on the stock to 30 francs from 24 francs after the company yesterday reported first- quarter profit more than doubled to $537 million as utilities in China and Europe expanded and upgraded power grids.

``The investment case remains compelling,'' Vontobel analyst Spiliopoulos Panagiotis wrote in a note e-mailed to investors today.

[waldron] 27/4/2007 16:07

Investor calendar
2007


May 3 Annual General Meeting Zurich/Switzerland
May 4 Annual general information meeting Västerås/Sweden
May 8 Ex-dividend date
July 26 Second-quarter 2007 results
October 25 Third-quarter 2007 results

[waldron] 27/4/2007 14:05

ABB "overweight," target price raised

Friday, April 27, 2007 4:48:23 AM ET
J.P. Morgan Securities

LONDON, April 27 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on ABB (ABJ.ETR), while raising their estimates for the company. The target price has been raised from CHF24.5 to CHF27.

In a research note published this morning, the analysts mention that the company has reported robust 1Q results, and its prospects appear bright. ABB's stock deserves to trade at a premium to the sector on account of the company's growth prospects and book-to-bill ratio, which is one of the best in the whole sector, the analysts say. The company has indicated that if the acquisitions do not materialize during the forthcoming 12 months, it would return cash to its shareholders, JP Morgan adds. The adjusted EPS estimate for 2008 has been raised by 9%.

[waldron] 27/4/2007 08:19

ABB upgraded to "overweight"

Thursday, April 26, 2007 3:05:57 PM ET
Prudential Financial

NEW YORK, April 26 (newratings.com) - Analysts at Prudential Financial upgrade ABB Ltd (ABB.NYS) from "neutral weight" to "overweight." The target price has been raised from $18 to $24.





usd 24 at 1.21 equals approx sfr 29

[waldron] 27/4/2007 07:15

ABB benefits from booming demand
By Haig Simonian in Zurich

Published: April 27 2007 03:00 | Last updated: April 27 2007 03:00

ABB shares surged 5 per cent yesterday as the Swiss-Swedish engineering group reported first-quarter figures far ahead of analysts' expectations.

Sales, orders and profits in power infrastructure and industrial automation jump-ed on the back of booming demand and productivity gains. Even the struggling robotics division appeared to have turned a corner.

The strong performance, combined with a rising war chest, prompted speculation that ABB would return to the takeover trail or restore more cash to shareholders. Net cash climbed by nearly $900m to $2.34bn at the end of March, prompting analysts to forecast a $3bn-$4bn cash pile by the end of the year. Res-ources will be boosted by the sale of the Lummus oil and gas operation, which is expected shortly.

"It was a superb quarter. All the divisions, and all the regions, did very well," said Fred Kindle, chief executive.

The group said it saw no sign of a decline in current record demand, although Mr Kindle cautioned recentlevels could not be sustained indefinitely.

"For now at least, we do not expect any change in the market conditions we have experienced for months. We see further potential to maintain the improvement in profitability. But history tells us also to be somewhat conservative with these extremely high growth rates we've seen," he said.

Net profits jumped by 163 per cent to $537m, while operating profits before interest and tax rose 67 per cent to $822m. The group's closely watched operating profit margin rose to 13.2 per cent from 9.6 per cent in the same period last year.

Sales rose 21 per cent to $6.22bn, while the group's order book soared by an even higher 26 per cent at $8.64bn.

Analysts highlighted the much higher-than-expected operating profit margin, which followed slight weakness in the fourth quarter of last year and which explained why so many forecasts were too low this time.

Mr Kindle said ABB would reveal new margin targets in September at investor presentations on its medium-term strategy.

He declined to be specific on takeover targets, beyond confirming the group had considered various opportunities.

High valuations and the often greater financial flexibility of private equity buyers had, however, made ABB reluctant to pounce.

Dramatic turnround in fortunes

ABB's first-quarter results are the most dramatic demonstration so far of a remarkable turnround in recent years. Lauded in the mid-1990s as one of Europe's most respected companies, the group later found itself on the verge of bankruptcy because of over-expansion, ill-judged acquisitions and a lack of central control and transparency. A harsh restructuring programme and many disposals created a much slimmer and more focused company that is now exploiting the benefits of surging world demand for electricity generating and distribution equipment, as well as factory automation technology.

[waldron] 26/4/2007 18:12

ABB upgraded to "buy"

Thursday, April 26, 2007 6:23:11 AM ET
Deutsche Bank

LONDON, April 26 (newratings.com) - Analyst Martin Wilkie of Deutsche Bank upgrades ABB Ltd (ABJ.ETR) from "hold" to "buy." The 12 month target price has been raised from CHF23 to CHF26.

In a research note published this morning, the analyst mentions that the company has reported its 1Q07 EBIT ahead of the consensus. ABB delivered margins at record level, substantially ahead of the estimates, the analyst says. The company is benefiting from robust demand for its transmission and distribution products and services, a trend which is expected to continue in the forthcoming years, Deutsche Bank adds.

[waldron] 26/4/2007 12:57

ABB says 1st-quarter net profit more than doubled

The Associated Press
Thursday, April 26, 2007


ZURICH, Switzerland: ABB Ltd. said Thursday its first-quarter net profit more doubled to US$537 million (€393 million) on rising demand for power infrastructure products and automation equipment.

The electrical engineering firm's results easily beat analyst expectations and compared with a US$204 million profit in the same three-month period in 2006.

"Our operational improvements and global reach are paying off," Chief Executive Fred Kindle said.

Orders increased 20 percent in the period ending March 31, driven by a US$65 million (€48 million) crane systems order and a US$110 million (€80 million) ship building contract in Asia, and a US$40 million (€29 million) power contract in Brazil, ABB said. The company posted a record level of US$8.64 billion (€6.3 billion) in orders, up from US$6.86 billion in the first quarter last year.

Demand for larger and medium-sized orders remained stable because of the expansion of power infrastructure networks in countries such as the United States, China, India and Russia, the company said.

Shares in ABB jumped 4.5 percent to 24.20 Swiss francs (US$20.13; €14.75) in Zurich.

The Swiss-Swedish company's strong sales growth also pushed up operating profit, which increased 67 percent to US$822 million (€602.2 million) from US$492 million a year ago. Operating profit margin soared to 15.4 percent, exceeding by far ABB's own medium-term margin target of 10 percent.

"These are excellent figures and show that the strong growth trend remains intact," said Panagiotis Spiliopoulos, an analyst at Zurich-based private bank Vontobel. "Many have underestimated this growth potential."

The strong results indicate that ABB has recovered from the problems it faced in previous years.

In 2002, ABB faced bankruptcy as costly asbestos litigation in the U.S. and a weak economy left it saddled with around US$10 billion in debt. A rigorous restructuring program with more than 10,000 job cuts helped it turn profitable again in 2005.

ABB said the business environment for the rest of this year "is expected to remain in line with the positive market situation of 2006 and the first quarter of this year."

[waldron] 26/4/2007 09:09

ABB Quarterly Profit Beats Estimates on Energy Orders (Update5)

By Antonio Ligi

April 26 (Bloomberg) -- ABB Ltd., the world's biggest builder of electricity networks, said first-quarter profit more than doubled, beating analysts' estimates, as utilities in China and Europe upgraded power grids. Shares of the Swiss company climbed to their highest in almost six years.

Net income surged to $537 million from $204 million a year earlier, the Zurich-based company said today. Analysts surveyed by Bloomberg predicted $429 million. Revenue gained 21 percent to $6.2 billion, with quarterly orders also exceeding forecasts.

``These results are sensational,'' said Mark Diethelm, an analyst at Zuercher Kantonalbank in Zurich. ``In Europe, the really big infrastructure upgrades have yet to come.''

ABB's markets will remain ``positive'' in 2007, though there may be some moderation in the flow of new work, it said. Investment in power grids in Europe and Asia helped drive up first-quarter orders 26 percent. China alone will spend about $90 billion on electricity transmission over the next five years, according to an October research note from analysts at Deutsche Bank.

Shares of ABB had advanced 1.75 Swiss francs, or 7.6 percent, to 24.9 francs, and traded at 24.25 francs as of 9:44 a.m. local time. They have advanced 13 percent this year, compared with a 14 percent gain at Munich-based Siemens AG, Europe's biggest engineer, and 26 percent at Schneider Electric SA of France, the world's largest maker of circuit breakers. ABB is valued at 53.9 billion francs ($45 billion).

Formed in 1988 through the merger of BBC Brown Boveri of Switzerland and ASEA AB of Sweden, ABB also manufactures robots used for everything from the packaging of cookies to the industrial milking of cows. At the end of 2006 it had about 108,000 employees in 108 countries.

Matching Peers

The Swiss company is the latest European engineer to report earnings ahead of analyst estimates. Schneider Electric reported a 22 percent jump in quarterly profit. Siemens' fiscal second- quarter profit soared 36 percent. Growth in the automation and controls industry is spurring engineering stocks including those of Invensys Plc, which gained 5.1 percent today.

ABB's stock tumbled on Feb. 15, when profit missed estimates for the first time since Chief Executive Officer Fred Kindle, 48, took charge in 2005. Larger, less profitable orders narrowed the company's operating profit margin by one percentage point to 10.4 percent and net income fell just shy of predictions.

Operating profit, or earnings before interest and taxes, increased 67 percent to $822 million in the first quarter, while orders grew to $8.6 billion. ABB's operating margin as a percentage of sales was 13.2 percent, ahead of its 10 percent target set for 2009.

Margin Rebound

```In light of the market's disappointment at fourth-quarter margins, this was the key issue going into the quarter,'' Julian Mitchell, an analyst at Credit Suisse in London, said in a research note. ``Margins rebounded even more than we had anticipated.''

Kindle said Feb. 15 that ABB did a ``bad job'' when planning targets through 2009 as most goals were achieved in 2006. The company underestimated the strength of the market as well as the swiftness it could carry out internal changes. New targets will be given in the second half, following a new strategic review.

Quarterly profit was equal to $0.25 a share, up from $0.1.

Contracts won in the quarter include an order worth more than 300 million euros to develop two electricity cables between Wales and Ireland to link the British and Irish grids, part of a European Union drive to create one single energy market in the region.

``Our operational improvements and global reach are paying off,'' Kindle said in a statement. ``All five divisions and every region, particularly Europe, contributed to our strong start to the year.''

To contact the reporter on this story: Antonio Ligi in Zurich at [e-mail]

Last Updated: April 26, 2007 03:50 EDT

[waldron] 26/4/2007 08:50

ABB Quarterly Profit Beats Estimates on Energy Orders (Update4)

By Antonio Ligi

April 26 (Bloomberg) -- ABB Ltd., the world's biggest builder of electricity networks, said first-quarter profit more than doubled, beating analysts' estimates, as utilities in China and Europe upgraded power grids. Shares of the Swiss company climbed to their highest in almost six years.

Net income surged to $537 million from $204 million a year earlier, the Zurich-based company said today. Analysts surveyed by Bloomberg predicted $429 million. Revenue gained 21 percent to $6.2 billion, with quarterly orders also exceeding forecasts.

``These results are sensational,'' said Mark Diethelm, an analyst at Zuercher Kantonalbank in Zurich. ``In Europe, the really big infrastructure upgrades have yet to come.''

ABB's markets will remain ``positive'' in 2007, though there may be some moderation in the flow of new work, it said. Investment in power grids in Europe and Asia helped drive up first-quarter orders 26 percent. China alone will spend about $90 billion on electricity transmission over the next five years, according to an October research note from analysts at Deutsche Bank.

Shares of ABB had advanced 1.75 Swiss francs, or 7.6 percent, to 24.9 francs as of 9:05 a.m. local time. They have advanced 13 percent this year, compared with a 14 percent gain at Munich-based Siemens AG, Europe's biggest engineer, and 26 percent at Schneider Electric SA of France, the world's largest maker of circuit breakers. ABB is valued at 53.9 billion francs ($45 billion).

Formed in 1988 through the merger of BBC Brown Boveri of Switzerland and ASEA AB of Sweden, ABB also manufactures robots used for everything from the packaging of cookies to the industrial milking of cows. At the end of 2006 it had about 108,000 employees in 108 countries.

Matching Peers

The Swiss company is the latest European engineer to report earnings ahead of analyst estimates. Schneider Electric reported a 22 percent jump in quarterly profit. Siemens' fiscal second- quarter profit soared 36 percent after a revamp of its technology unit and acquisitions in the medical division.

ABB's stock fell as much as 4.3 percent on Feb. 15, when profit missed estimates for the first time since Kindle took charge in 2005. Larger, less profitable orders narrowed the company's operating profit margin by one percentage point to 10.4 percent and net income fell just shy of predictions.

Operating profit, or earnings before interest and taxes, increased 67 percent to $822 million in the first quarter, while orders grew to $8.6 billion. ABB's operating margin as a percentage of sales was 13.2 percent, ahead of its 10 percent target set for 2009.

Margin Rebound

```In light of the market's disappointment at fourth-quarter margins, this was the key issue going into the quarter,'' Julian Mitchell, an analyst at Credit Suisse in London, said in a research note. ``Margins rebounded even more than we had anticipated.''

Kindle said Feb. 15 that ABB did a ``bad job'' when planning targets through 2009 as most goals were achieved in 2006. The company underestimated the strength of the market as well as the swiftness it could carry out internal changes. New targets will be given in the second half, following a new strategic review.

Quarterly profit was equal to $0.25 a share, compared with $0.1.

Contracts won in the quarter include an order worth more than 300 million euros to develop two electricity cables between Wales and Ireland to link the British and Irish grids, part of a European Union drive to create one single energy market in the region.

``Our operational improvements and global reach are paying off,'' Kindle said in a statement. ``All five divisions and every region, particularly Europe, contributed to our strong start to the year.''

To contact the reporter on this story: Antonio Ligi in Zurich at [e-mail]

Last Updated: April 26, 2007 03:09 EDT