ABB Stock Dips On Weak Q4 Profit; Backs Medium-term View; Partners With Dassault

(RTTNews) - Shares of ABB Ltd.(ANN.L, ABB) were losing around 2 percent in the morning trading after the Swiss engineering firm reported Thursday lower profit in its fourth quarter. The company also confirmed medium term group targets. Separately, ABB announced its strategy update, giving targets for new ABB's four leading businesses.

Regarding the short-term outlook, the company said macroeconomic signs are mixed in Europe and trending positively in the United States, with growth expected to continue in China. The overall global market is growing, with rising geopolitical uncertainties in various parts of the world. Oil prices and foreign exchange translation effects are expected to continue to influence the company's results.

Further, the company announced a new global software partnership with Dassault Systèmes, a unique end-to-end digital value proposition in combination with its leading digital solutions offering ABB Ability to support the planning, building and operations of industrial customers' operations.

ABB also announced the appointment of Sylvia Hill as Chief Human Resources Officer and member of the Executive Committee, effective June 1. She succeeds Jean-Christophe Deslarzes, who has decided to step down to pursue a non-executive career.

For the fourth quarter, net income attributable to the company dropped 19 percent to $317 million from last year's $393 million. Basic earnings per share were $0.15, down from $0.18 a year ago.

Operational earnings per share was $0.30, 9 percent lower than last year.

Operational EBITA dropped 12 percent from last year to $584 million. Operational EBITA margin was 7.9%, down 1.8 percentage points, impacted by a combined 400 basis points due to stranded costs, legacy.

Revenues for the quarter increased 9 percent to $7.40 billion from $6.80 billion last year. Revenues grew 5 percent on a comparable basis with strong growth in Robotics and Motion, robust performance from Electrification Products and a steady result from Industrial Automation.

Total orders grew 10 percent on a reported basis and 7 percent on a comparable basis to $6.99 billion with growth in all divisions and regions.

ABB's board has proposed an ordinary dividend of 0.80 Swiss francs per share for 2018, subject to shareholder approval at the company's annual general meeting on May 2.

ABB CEO Ulrich Spiesshofer, said, "In 2018, we brought the company back to growth and delivered solid order and revenue growth. ...We will continue to drive the operational improvements in Electrification Products and our company overall."

In Switzerland, ABB shares were trading at 19.88 Swiss francs, down 1.90 percent.