ABB: quarterly profit falls 21% on Covid impact
(CercleFinance.com) - ABB on Wednesday reported second-quarter profit that is down 21%, as the world's largest maker of power grids saw its sales badly hit by the Covid-19 pandemic.
The power equipment maker said operational earnings before interest, tax and amortization (EBITA) dropped to 651 million dollars in the past quarter, from 825 million dollars a year ago.
Meanwhile, second-quarter sales fell by 18% to 6 billion dollars, with comparable sales down 14%.
However, the Zurich-based ABB said operational margins turned out "better than (it) had anticipated," with an EBITA margin of 10.6%, down just 90 basis points year-on-year.
ABB also said that it will launch its previously announced share buyback program on 23 July, initially planning to buy 10% of its share capital, for a total of 4.2 billion Swiss francs (about 4.5 billion dollars).
The shares were trading up 2% on Wednesday morning following all these announcements.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The power equipment maker said operational earnings before interest, tax and amortization (EBITA) dropped to 651 million dollars in the past quarter, from 825 million dollars a year ago.
Meanwhile, second-quarter sales fell by 18% to 6 billion dollars, with comparable sales down 14%.
However, the Zurich-based ABB said operational margins turned out "better than (it) had anticipated," with an EBITA margin of 10.6%, down just 90 basis points year-on-year.
ABB also said that it will launch its previously announced share buyback program on 23 July, initially planning to buy 10% of its share capital, for a total of 4.2 billion Swiss francs (about 4.5 billion dollars).
The shares were trading up 2% on Wednesday morning following all these announcements.
Copyright (c) 2020 CercleFinance.com. All rights reserved.