ABB Reports Higher Net Profit But Cautious Outlook For 2010 (ABB)
February 18, 2010 11:54 AM
According to a report in the Wall Street Journal, ABB Ltd. (ADR) (NYSE: ABB) has reported a significant increase in Q4 profits. This was on the back of lower costs as well as a weak dollar. But the company is rather cautious in its 2010 outlook, based on lower demand in the US and Western Europe.
The company reported a net profit of $540 million, a quantum jump from the $213 million it reported a year earlier. Sales were however down 4% to $8.76 billion from $9.14 billion,with the operating margin improving from 5% to 9.1%.
Chief Executive Joe Hogan said that ABB will reign in costs to meet its medium-term operational targets. "Cost will remain a key focus," he said, adding that ABB will increase its savings target to $3 billion from $2 billion.
