ABB reports growth in the first quarter of 2012

ABB, the Zurich, Switzerland-based electrical manufacturer, reported higher orders and revenues in the first quarter of 2012, led by growth in North America. Operational Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) declined 7% compared to the same quarter a year earlier while net income was up 5%.

Orders were 2% above the high levels in the first quarter of 2011, driven mainly by utility investments in power distribution and industrial demand for automation products. Service orders were up 9% and represented 20% of total orders.

Revenues increased in all divisions and were 8% higher than the same quarter a year earlier, led by 21% growth in Discrete Automation and Motion (15% organic) and 9% in Power Products. Revenues were also “supported by the strong order backlog” which continued to grow in the first quarter and is now at a near record of $29.9 billion. Also, service revenues grew 12%.

Operational EBITDA was $1.2 billion with an operational EBITDA margin of 13.9%, down 1.8 percentage points versus Q1 2011 on continuing mix and price pressure that were partly offset by positive volume impacts and cost savings of approximately $260 million.

Click here for more information on ABB’s first quarter report.

-Bill O’Leary

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