ABB Shares Slide After Drop in Orders -- Update
27 October 2016 - 8:01PM
Dow Jones News
By Brian Blackstone
ZURICH--Shares in Swiss engineering giant ABB Ltd. slid Thursday
after the company reported that third-quarter revenue fell from the
previous year amid uncertainties over the U.S. presidential
election and the U.K.'s decision to exit the European Union.
ABB shares fell more than 6% in early trading.
The disappointing quarterly showing came just weeks after ABB
rebuffed calls from some of its largest shareholders to spin off
its power grid unit, saying it would revamp the division instead
under its ownership.
ABB said third-quarter revenue fell 3.1% to $8.26 billion from
to $8.52 billion in the same period a year earlier. Analysts
surveyed by Dow Jones Newswires had expected revenue of $8.33
billion.
"In the third quarter, we experienced significant macro
uncertainties around Brexit and the U.S. elections as reflected in
the low order pattern," ABB Chief Executive Ulrich Spiesshofer
said.
Orders fell by more than $1 billion to $7.53 billion in the
three months to end-September from $8.77 billion in the same period
last year.
The company had noted weaker orders in its power-grids division
ahead of the company's capital markets day earlier this month.
"ABB has delivered a significant orders miss, driven by customer
deferrals in process end-markets, and due to uncertainty around the
power grids separation," analysts at Morgan Stanley analysts wrote
in a research note.
"We suspect that this may mark a low point in orders -- we are
inclined to be constructive in the event that the shares sell off
significantly," the analysts wrote.
Write to Brian Blackstone at brian.blackstone@wsj.com
(END) Dow Jones Newswires
October 27, 2016 04:46 ET (08:46 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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