ABB’s orders decline, but cost savings improve profitability
Switzerland, Zurich: ABB said the company’s third-quarter orders declined 14 per cent due to the hesitation of customers although the cost-saving programs helped improve the Swiss power transformer maker’s profit margin, according to the official press release.
The company reported net profit of $568 million for the three months ending on September 30, which is a decline from $577 million a year earlier.
Orders declined from $8.77 billion to $7.53 billion.
The company’s operating earnings before interest, taxes and amortisation rose to 12.6 per cent from 12.5 per cent, thanks to the cost-savings program and partnerships made with other companies to mitigate the risks on big projects.