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| ABB reports strong Q1 results ABB, a European engineering giant based in Zurich, reported a 30-percent increase in earnings before interest and taxes (EBIT) and strong top-line growth for the first three months of 2006 compared to the same period in 2005. Net income increased slightly to $204 million from $199 million in the same quarter in 2005, despite an $89-million expense in Discontinued operations to account for the change in value of ABB shares to cover asbestos liabilities. Orders in the first quarter grew by 15 percent (local currencies: 21 percent) compared to the same quarter last year and revenues were 7 percent higher (local currencies: 13 percent). Orders and revenues were higher in all regions and all divisions, except Robotics and Non-core activities. Order growth was strongest in the Middle East and Asia regions, fueled primarily by increasing demand for additional power and industrial infrastructure linked to economic growth and high oil prices. In Europe and the Americas, orders to refurbish power grids and improve the performance of existing industrial production were the main drivers of growth. Compared to the first quarter of 2005, EBIT grew 30 percent to $509 million and the EBIT margin reached 9.4 percent on the combination of higher revenues, increased factory loadings, further operational efficiencies, cost reduction measures and improved project selection and execution. Cash flow from operating activities was $39 million, an improvement of $249 million versus the first quarter of 2005, primarily reflecting higher cash flows in the Power Products division and Non-core activities compared to the same quarter in 2005. write your comments about the article :: © 2006 Construction News :: home page |