ABB’s CEO says profit warning is ‘purely operational’
ABB's CEO, Ulrich Spiesshofer, told CNBC that the fourth-quarter profit warning is "purely operational" and the company is looking to "turn the page".
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ABB’s CEO, Ulrich Spiesshofer, told CNBC that the fourth-quarter profit warning is “purely operational” and the company is looking to “turn the page”.
This statement was issued as a comment after the world’s largest manufacturer of power transformers said its fourth-quarter earnings would be hit by $ 260 million in charges due to storm-related delays in offshore wind projects and “operational issues” in its Power Systems division.
“We installed offshore platforms. During the instillation…we had severe storms. It is our responsibility to have safe operations out there. We pulled our teams off these platforms during the storm phase. That resulted in delays and the associated costs and that is what is hitting us at the moment,” Spiesshofer said and added that the company will “move on and turn the page”.
The restructuring and basic earnings per share, which are expected to be approximately $0.23, down from $0.26 a year ago, will also affect the results.
Alstom also announced the lowering of the profit targets on Tuesday for this year and next year which have been affected by weak orders for the power equipment.
Spiesshofer was, however, optimistic about the prospects for the sector in 2014.
Source: CNBC
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