ABB reported on July 21 a 43% increase in second-quarter net income to $893 million. The company cites strong industrial growth, higher earnings in the Power Systems division and the contribution from recent acquisitions, especially Baldor Electric.
Revenues rose 17% and orders increased 18% from the second quarter of last year, with growth reported in both mature and emerging markets.
Investments aimed at increasing operational efficiency translated into strong demand for robots, energy-efficient motors and low-voltage systems in the second quarter, while capacity expansions and the need for service drove higher orders in the oil and gas, pulp and paper, metals and marine sectors.
Increasing requirements for electricity in industry and general economic growth, especially in the emerging markets, drove demand for power distribution solutions. Transmission-related investments, which generally come later in the economic cycle, remained at low levels, the company said.
This was a strong quarter where we continued to execute well, driving further revenue growth, cash generation and a solid increase in shareholder returns, said Joe Hogan, ABB's CEO.See Also ABB Wins Contract for Chinese Electricity Project