By Bridget McCrea
ABB Ltd., (NYSE:ABB) of Zurich, Switzerland, reported higher
orders and revenues in the second quarter of 2012 despite short-term
macroeconomic volatility as customers in almost all regions continued to invest
in power grid upgrades and improved industrial productivity.
Orders received grew 9% to $10.1 billion during the second
quarter, while revenues rose to $9.7 billion, representing a 6% increase over
second quarter 2011. According to the company, which is manufactures power and
automation technologies, utilities continued to invest in transmission grids,
while industrial customers—especially in oil and gas—increased spending to
secure reliable power and improve productivity.
ABB’s operational EBITDA was $1.5 billion, which represented
a 5% decrease compared to the same quarter in 2011. The firm’s operational
EBITDA margin was 15.1% versus 16.0% the previous year. Cash flow from operations was approximately $300
million lower than the same period last year, and ABB’s total divisional cash
from operations increased by $40 million.
Net income amounted to $656 million, including the negative
impact of the strengthening U.S. dollar and transaction and amortization-related
charges of approximately $100 million related to the acquisition of U.S.
low-voltage product manufacturer Thomas & Betts, which was completed on May
16 of this year.