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ABB notes robotics growth during ‘transitional year’

ABB Group has recorded a 14 per cent increase in robotics orders with third-party base orders increasing by 10 per cent, it has announced in its latest report.

However, amid ongoing uncertainty in the global market including the impact of Brexit, 2017 is expected to be a transitional year for the company.

According to ABB’s second quarter review, it showed revenue growth by five per cent, including a net income of US$525 million (A$660 million).

Meanwhile, the company’s operational EBITA margin was impacted by product mix, significantly higher commodity prices and under absorption, which more than offset cost-out measures.

“In Q2, ABB continued to build its growth momentum as our targeted initiatives are delivering,” said ABB CEO Ulrich Spiesshofer. “Order growth was broad-based and across all regions,

“Our industry-leading digital offering, ABB Ability, is taking off and starting to contribute to growth.”

“Operational performance in the Power Grids and Industrial Automation divisions was solid in the quarter.”

Although ABB’s electrification products and robotics and motion improved margins sequentially, they were not able to fully compensate commodity price headwinds and overcapacity during the quarter.

“While we are pleased with the growth momentum, especially the double-digit order growth in Robotics and Motion, we remain firmly focused on further improving operational execution and our cost base,” Spiesshofer said.

“The successful completion of the B&R acquisition and the handover of our last legacy off-shore wind project, Dolwin 2, are solid examples of the disciplined execution of our Next Level strategy.”

Macroeconomic and geopolitical developments are signaling a mixed picture with continued uncertainty, the report added.

“Some macroeconomic signs in the US remain positive and growth in China is expected to continue,” ABB said.