ABB Reports In-Line Earnings In Q1, Tops Revenue Estimates
Zacks Investment Research | Apr 18, 2018 11:27PM ET
ABB Ltd. (NYSE:ABB) posted operational earnings per share of 31 cents for first-quarter 2018, reflecting an increase of 10.7% year over year. Notably, the reported figure came in line with the Zacks Consensus Estimate. Strong growth in revenues helped maintain earnings, however, this was somewhat offset by increase in total cost of sales.
Quarterly revenues came in at $8,627 million, up 9.8% year over year. The top-line improvement can be attributed to increase in revenues in each of the company’s four segments. Revenues also came ahead of the Zacks Consensus Estimate of $8,272 million.
Segmental Revenues in Details
Electrification Products (up 9% year over year to $2,494 million): Strong market demand in the United States, Europe, and Asia, Middle East and Africa (AMEA) drove revenues. Orders were up 10% year over year to $2,786 million owing to strong demand across all regions.
Robotics and Motion (up 15.1% to $2,209 million): Sales grew steadily on strong execution of the order backlog. Orders of this segment moved up 18% year over year to $2,579 million on a year-over-year basis backed by reported growth across all segments and regions.
Industrial Automation (up 22.9% to $1,859 million): Orders recorded impressive growth of 26% year over year to $2,117 million. The uptick was owing to service and selective investment in mining and specialty marine vessel solutions.
Power Grids (up 1.4% to $2,385 million): Higher orders contributed to the segment’s revenue growth. Orders increased 7% to $2,480 million, mainly owing to several large orders that include an order for an HVDC link between the UK and France.
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