ABB Ltd (ABB) reported earnings on Thur 27 Oct 16 (b/o)

** charts before earnings **

** charts after earnings **

ABB Ltd misses by $0.02, misses on revs; names Timo Ihamuotila as New Chief Financial Officer 

• Reports Q3 (Sep) earnings of $0.32 per share, $0.02 worse than the Capital IQ Consensus of $0.34; revenues fell 3.1% year/year to $8.26 bln vs the $8.36 bln Capital IQ Consensus.
• Orders
  • Total orders declined 13 percent (14 percent in US dollars) compared with the third quarter of 2015, reflecting timing of large order awards and lower short cycle volumes. Base orders (below $15 million) decreased 6 percent (7 percent in US dollars), while large orders ($15 million and above) were lower in all divisions and represented 11 percent of total orders compared with 17 percent a year earlier. Orders for services and software were 3 percent lower (5 percent in US dollars) and represented 17 percent of total orders compared with 16 percent a year ago.
• Outlook
  • Macroeconomic and geopolitical developments are signaling a mixed picture with continued uncertainty. Some macroeconomic signs in the US remain positive and growth in China is expected to continue, although at a slower pace than in 2015. The market remains impacted by modest growth and increased uncertainties relating to Brexit in Europe and geopolitical tensions in various parts of the world. Oil prices and foreign exchange translation effects are expected to continue to influence the company's results.
  • The attractive long-term demand outlook in ABB's three major customer sectors - utilities, industry and transport & infrastructure - is driven by the Energy and Fourth Industrial Revolutions.
• New CFO
  • ABB announced that Timo Ihamuotila has been named Chief Financial Officer and member of the Executive Committee, effective April 1, 2017.
  • Ihamuotila succeeds current CFO Eric Elzvik in an orderly transition process. Elzvik will pursue career opportunities outside of ABB after a thorough handover in second quarter of 2017.
  • Ihamuotila is joining ABB from Nokia (NOK), where he has held the position of CFO since 2009