ABB announces Q2 results
Switzerland, Zurich: ABB presented the results of the second quarter of 2016, highlighting solid progress on profitability.
– Operational EBITA margin up +100 basis points to 12.7 %
– All divisions in target margin corridor
– White collar productivity program delivering results
– Operational earnings per share up +18 %
– Net income $406 million impacted by $367 million of restructuring and restructuring related expenses
– Base orders steady, continued market headwinds reflected in total orders -5 %
– Revenues -2 % on lower short-cycle volumes and timing of order backlog execution
– Cash flow from operating activities up +80 % at $1,082 million
“We improved our operational margin for the seventh consecutive quarter and significantly increased cash flow through relentless execution amid continued strong market headwinds and economic uncertainties,” said CEO Ulrich Spiesshofer.
“We delivered double digit operational earnings per share growth for the quarter and year-to-date, as cost savings contributed to the bottom line,” he said.
“Our continued focus on high growth segments dampened the impact of challenging markets like the process industries,” Spiesshofer said. “We are improving our cost and capital structure, as well as our productivity, and shaping a leaner, more agile ABB in a disciplined way. We have strengthened our leadership team and are executing our Next Level strategy, focused on accelerating sustainable value creation.”