ABB Q1 Profit Down; Warns Of Q2 Results - Quick Facts

(RTTNews) - Swiss engineering company ABB Ltd.(ANN.L, ABB) reported that its first-quarter net income attributable to the company was $376 million and basic earnings per share of $0.18, both 30 percent lower year-on-year.

"In the second quarter, we expect ABB's operations to be significantly challenged by a sharp drop in demand due to lockdowns in many parts of the world," the company said in a statement.

Net income from continuing operations for the first-quarter was $326 million, 21 percent lower year-on-year.

Income from operations of $373 million declined 37 percent. The result included a combined $263 million of non-operational items.

Operational earnings per share of $0.30 was 2 percent lower compared to the prior year period.

Revenues for the quarter declined 9 percent to $6.22 billion from last year, while it was down 7 percent on comparable basis. Foreign exchange translation effects had a net negative impact of 1 percent and portfolio changes a net negative impact of 1 percent.

Orders were 4 percent lower or up 1 percent comparable in the quarter compared to the prior year period.

ABB said that its Board and Executive Committee are voluntarily taking a 10 percent reduction in board compensation and salary for the duration of the crisis.

In addition, ABB will contribute CHF 1 million to the International Committee of the Red Cross (ICRC) COVID-19 effort.

The company said it is not currently providing guidance for full year 2020.

The company expects its results to be significantly impacted in the second quarter. Orders and revenues are expected to show material sequential decline in all businesses, with Robotics & Discrete Automation expected to decline by more than 30 percent year-on-year.