ABB to revamp Power Systems unit after earnings miss estimates
Switzerland, Zurich: ABB, the world’s largest maker of power transformers, reported first-quarter profit that missed the estimates.
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Switzerland, Zurich: ABB, the world’s largest maker of power transformers, reported first-quarter profit that missed the estimates.
This is due to weaker performance in the Power Systems unit which manages contracts such as offshore grid connections. First-quarter net income was down to 18 %, to $ 544 million and sales also declined 3 % to $ 9.5 billion.
The unit will end bidding for orders to design and build solar power plants, according to ABB e-mailed statement, reports Swiss Info. The company will, however, start bigger improvements which will take longer than initially expected.
Ulrich Spiesshofer, CEO since September is concentrating on smaller asset sales. “We are disappointed with the continued poor performance in Power Systems and are rigorously executing actions that go well beyond the previously-announced strategic realignment.” he said. “Management is making ‘good progress’ on a longer-term strategic plan for ABB that will be presented in September.” he added.
Source: Swiss Info
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