ABB of Zurich, Switzerland reported strong order growth, stable revenues, and a significant increase in cash from operations for the second quarter of 2014. The company’s $10.6 billion in orders during the quarter were 14 percent higher (13 percent on a like-for-like basis) compared with the same quarter in 2013. Base orders accelerated and large orders grew more than 70 percent. The positive growth momentum was supported across all regions that the company serves.
“Last October we said that we will drive organic growth through penetration, innovation and expansion and now we are delivering results,” said ABB’s CEO, Ulrich Spiesshofer, in a company press release. “Our focused actions are paying off and support overall increased order momentum. In the second quarter we saw encouraging growth in our two largest markets, the US and China.”
ABB reported that cash from operations improved by more than 60 percent to $888 million in the quarter. Demand for power distribution systems and equipment from utility customers remained steady during the quarter, the company reported, while utility investments in power transmission remained selective.
ABB’s net income for the quarter amounted to $636 million and included $333 million of depreciation and amortization, of which approximately $100 million of amortization was related to acquisitions. Restructuring-related charges amounted to $40 million. ABB reported cash flow from operations of $888 million in the second quarter, an increase of more than $300 million compared with the second quarter in 2013.
Industrial demand varied by region and end market, with positive trends in sectors such as oil and gas and general industry and continued weakness in mining. Infrastructure markets were also mixed. Construction markets were mainly flat to slightly weaker while rail and marine transportation demand was positive, according to ABB.Tagged with financial, tED