ABB reported third quarter net income of USD 1 billion, including a USD 380 million net gain for various previously announced provision adjustments and EBIT of USD 1.4 billion.
Orders declined to USD 7.1 billion, equivalent to a local currency reduction of 15%, while revenues decreased to USD 7.9 billion, lower by 5% in local currency. Investments in power grids continued to grow but lower demand for shorter cycle products in industrial markets resulted in a 23% local currency decrease in base orders.
2009 Q3 key figures
| | Q3 '09 | Q3 '08 | Change $ | Change Local |
| Orders | 7,060 | 8,885 | -21% | -15% |
| Order backlog (end Sep) | 26,159 | 27,211 | -4% | -4% |
| Revenues | 7,910 | 8,791 | -10% | -5% |
| EBIT | 1,419 | 1,291 | 10% | |
| as % of revenues | 17.9% | 14.7% | ||
| Net income | 1,034 | 927 | 12% | |
| Basic net income per share ($) | 0.45 | 0.41 | ||
| Cash flow | 1,281 | 1,121 |
In USD millions unless otherwise indicated
Divisional performance Q3 2009
Power Products
| | Q3 '09 | Q3 '08 | Change $ | Change Local |
| Orders | 2553 | 3409 | -0.25 | -0.21 |
| Order Backlog (Sep end) | 8712 | 9081 | -0.04 | -0.04 |
| Revenues | 2823 | 3034 | -0.07 | -0.02 |
| EBIT | 477 | 536 | -0.11 | |
| as % of revenues | 0.169 | 0.177 | ||
| Cash flow | 592 | 479 |
In USD millions unless otherwise indicated
Power Systems
| | Q3 '09 | Q3 '08 | Change $ | Change Local |
| Orders | 1,991 | 1,293 | 54% | 70% |
| Order backlog (end Sep) | 9,770 | 8,661 | 13% | 14% |
| Revenues | 1,612 | 1,601 | 1% | 7% |
| EBIT | 117 | 113 | 4% | |
| as % of revenues | 7.3% | 7.1% | ||
| Cash flow | 11 | 111 |
In USD millions unless otherwise indicated
Automation Products
| | Q3 '09 | Q3 '08 | Change $ | Change Local |
| Orders | 2,033 | 2,741 | -26% | -22% |
| Order backlog (end Sep) | 3,940 | 4,380 | -10% | -12% |
| Revenues | 2,234 | 2,612 | -14% | -10% |
| EBIT | 340 | 491 | -31% | |
| as % of revenues | 15.2% | 18.8% | ||
| Cash flow | 536 | 509 |
In USD millions unless otherwise indicated
Process Automation
| | Q3 '09 | Q3 '08 | Change $ | Change Local |
| Orders | 1,145 | 1,969 | -42% | -39% |
| Order backlog (end Sep) | 6,064 | 7,146 | -15% | -16% |
| Revenues | 1,809 | 1,920 | -6% | 0% |
| EBIT | 164 | 218 | -25% | |
| as % of revenues | 9.1% | 11.4% | ||
| Cash flow | 254 | 243 |
In USD millions unless otherwise indicated
Robotics
| | Q3 '09 | Q3 '08 | Change $ | Change Local |
| Orders | 169 | 400 | -58% | -56% |
| Order backlog (end Sep) | 367 | 665 | -45% | -46% |
| Revenues | 211 | 431 | -51% | -49% |
| EBIT | -36 | 28 | n/a | |
| as % of revenues | -17.1% | 6.5% | ||
| Cash flow | -5 | -9 |
In USD millions unless otherwise indicated
Mr Joe Hogan CEO of ABB said that "We turned in a strong cash performance this quarter and held EBIT margins well within our target range thanks to the continued timely execution of the order backlog and further progress in our cost take out program. Order trends were in line with what we saw in the second quarter, with steady demand in power and oil and gas but lower base orders in industrial markets. We'll continue to focus on making sure our costs are in line with market demand, but at the same time stay aggressively positioned to capture the significant growth opportunities in power infrastructure, renewable, energy efficiency and emerging markets."