ABB Warns On Q1 Revenue, Withdraws FY20 Outlook Amid COVID-19 - Quick Facts

(RTTNews) - Swiss engineering company ABB Ltd.(ANN.L, ABB) Monday said it expects first-quarter revenues to decline in all its businesses due to the coronavirus or COVID-19 pandemic. Meanwhile, orders are somewhat less impacted.

Further, ABB said it is no longer providing financial guidance for full year 2020 citing the continued uncertainty, including the recent oil price decline.

The company said its previous outlook issued in February did not include the virus impacts as the effects were mainly limited to China at that time. Since then, the company experienced a decline in trading conditions due to the outbreak, further impacted by a weakening oil price.

The situation in China has stabilized, while COVID-19 has spread rapidly to the western hemisphere in March.

In the first quarter, the Robotics & Discrete Automation business, which was already facing significant end-market headwinds from the automotive sector, remains challenged, with orders and revenues both expected to decline by more than 20 percent year-on-year.

Operational EBITA margins are also expected to decline in all ABB's businesses, burdened by lower volumes, partly offset by self-help efforts.

The company said the majority of ABB's production facilities remain fully or partly operational and supply chain impacts have been minimal. However, the outbreak is expected to continue to have an impact globally, potentially creating disruption across production sites and further curtailing product demand, project and service activity.

Further, the Board of Directors and the Executive Committee of ABB have decided to voluntarily take an immediate 10 percent reduction in board compensation and salary for the duration of the crisis.