ABB of Zurich, Switzerland reported lower fourth-quarter results thanks to storm-related related project delays and operational issues with its Power Systems (PS) division. Additional restructuring-related charges were taken in response to the division’s soft order intake in 2013, according to a company press release. ABB’s fourth-biggest division, the PS unit posted revenues of $2.06 billion in the third quarter of 2013.
ABB said fourth-quarter basic earnings per share fell to $0.23 compared with $0.26 a year earlier. According to the Wall Street Journal, analysts had forecast $0.40 per share.
“While the performance of four divisions was in line with our expectations during the fourth quarter, the issues we face in Power Systems are disappointing,” said CEO Ulrich Spiesshofer. “A focused action program is addressing these issues and implementation has been started swiftly. With Claudio Facchin we have a leader at the helm of PS who brings global systems experience to drive the business towards an improved performance.”
According to ABB, PS operational EBITDA was impacted by approximately $260 million in charges resulting mainly from delays to offshore wind projects caused by severe winter storms in the North Sea in December and operational issues that are being addressed with the enhanced realignment program. “Storms like this slow down installation processes and operations,” according to the company, and led to costly knock-on impacts and delays on related activities and time schedules.Tagged with tED