ABB pointed to “significantly higher” first quarter operating margins at its power grid business as proof its ongoing “step change” improvement programme is taking hold.
The engineering giant posted an EBITDA margin of 8% in the quarter, compared with 5.9% in the year-ago period, despite a 2% drop in grid revenues to $2.52bn.
ABB said the slight decline in revenues reflected “the timing of the order backlog”. The division won $3.3bn in orders during the first three months of the year.
The power grids division has previously been hit hard by transmission project issues particularly in the German offshore wind sector, prompting the introduction of a major turnaround designed to address the problems.
“Continued focus on the integration of renewables, enhanced power exchange and security of supply are driving the need for HVDC interconnections, an area where ABB is a technology pioneer with an unparalleled track record,” said the company.
ABB posted overall net profit of $500m, an 11% decline year on year, on revenues of $7.9bn, down 2%.
Image: subsea cables on their way to work (ABB)
