=ABB (ABB) reported earnings on Wed 8 Feb 2017 (b/o)

ABB Ltd misses by $0.02, reports revs in-line:

• Reports Q4 (Dec) earnings of $0.33 per share, $0.02 worse than the Capital IQ Consensus of $0.35; revenues fell 2.7% year/year to $8.99 bln vs the $9.03 bln Capital IQ Consensus.
  • Revenues up 1% in constant currency
  • 3% orders growth driven by large contract awards
  • 9% orders growth in the United States and China

• Demand
  • Demand in Europe was subdued due to moderate overall growth and timing of large capital investments. Total orders declined 8% (12% in USD) while base orders were stable (3% lower in USD). Base order demand was positive in Spain, Norway and the United Kingdom while weak in Turkey, France and the Netherlands.
  • The Americas was steady mainly driven by increased momentum for transmission and distribution needs. Total orders were steady in the quarter as large order awards offset a base order decline of 3%. The United States grew 9% (9% in USD). Base orders were positive in the United States and Mexico and declined in Canada and Brazil.
  • Demand in Asia, the Middle East and Africa was strong as India continued to invest in reliable and efficient power transmission solutions and China fostered further investment in industrial automation. Total orders for the region grew 17% (13% in USD) driven by strong order development in India and China. Base orders were 2% lower (5% in USD) as strong order development in India, up 14% (12% in USD) and China up 11% (5% in USD), could not offset declines in Saudi Arabia and other parts of South East Asia.
• Outlook
  • Macroeconomic and geopolitical developments are signaling a mixed picture with continued uncertainty. Some macroeconomic signs remain positive in the United States and growth in China is expected to continue. The overall global market remains impacted by modest growth and increased uncertainties, e.g., 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. With this and the ongoing transformation of ABB, we expect 2017 to be a transitional year.
  • 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.