CEO, ABB
www.abb.com
Orders & Contracts
ABB, a leader in power and automation technologies, reported that its focus on profitable organic growth and the related strategic initiatives resulted in a strong order increase across all regions in the third quarter, a company release said.
However, ABB’s orders decreased in India. Large marine orders in South Korea led strong Asia growth in the quarter. This was supported by continued growth in China, although at a slower pace than in the first half of the year. Orders increased in the Middle East and Africa, led by the large order won in Tunisia, and were higher in both power and automation.
Total orders rose to $11.2 billion, boosted by large orders (above $15 million) including a power transmission link in Europe, a mining automation project in the Americas and a gas treatment plant in Africa. Base orders (below $15 million) increased in every region. Continued successful implementation of ABB’s service strategy resulted in a 10 per cent increase in service orders in the quarter.
“Our programme for profitable organic growth has successfully created healthy order momentum across all regions,” said CEO Ulrich Spiesshofer. “I am encouraged to see attractive large project wins and five consecutive quarters of base order growth.”
Utility demand for power distribution solutions was steady in the quarter while investment in power transmission systems remained selective. Industrial demand varied by region and end market, with positive demand in oil and gas and general industry. Demand in the mining sector was stable at low levels. Infrastructure and construction markets were mixed, while rail and marine transportation demand was positive.
In this mixed environment, total orders received were up 25 per cent in the quarter (28 per cent on a like-for-like basis). Most of the increase resulted from higher large orders, which represented 25 per cent of total orders received in the quarter, compared to 9 per cent in the same quarter in 2013.
The order backlog at the end of September amounted to $27 billion, an increase of 4 per cent compared to the end of the same quarter in 2013 and 9 per cent higher than at the end of 2013.
All regions recorded growth in base and large orders on a like-for-like basis and across both power and automation in the third quarter.
