Tuesday, November 2, 2010

Utilities Keep ABB A Little Dim

For the most part, this earning season has been filled with reports of strong year-over-year growth by industrial companies of all stripes. However, Swiss industrial giant ABB (NYSE:ABB) is not fully sharing in that rebound, as a slower recovery in large-scale power projects is crimping the company's present day growth. 

The Quarter That Was
All in all, ABB did not have a bad quarter - just not a great one. Sales rose 2% organically, while services revenue rose 11%. Though the company did see double-digit growth in discrete automation and low-voltage products, power products were down by double digits and power systems was up only in the mid-single digits.

Looking ahead, though, orders were up a strong 18% on an organic basis, and that was without much help from those power businesses (orders were down 7% in power products, the company's largest single segment).


Please click below for the full article:
http://stocks.investopedia.com/stock-analysis/2010/Utilities-Keep-ABB-A-Little-Dim-ABB-SI-ALSMY-HON-EMR-ROK1102.aspx

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