ABB has trumpeted significant progress in turning around its Power Systems business in the third quarter with operational EBITA at 4.6%, compared with a negative 0.6% in the year-ago period.
Revenues in the troubled segment, which include offshore wind transmission, were up 3% at $1.48bn despite orders dropping by 11% to $1.7bn.
“Operational EBITA and the related margin increased mainly as a result of ongoing ‘step change’ measures and continued cost savings to return the division to higher and more consistent profitability,” said ABB.
“Orders during the quarter were lower than the third quarter of 2014 largely due to the timing of large orders, challenging macro-economic conditions and project selectivity. Revenue growth was mainly driven by steady execution of a strong order backlog,” it added.
The company handed over the DolWin1 hub to North Sea transmission operator TenneT during the quarter and installed DolWin2, while also exiting solar EPC as planned.
Overall company results represented what ABB called a “challenging market”, with revenues down 13% at $8.52bn and net income down 21% at $577m.
Image: DolWin2 during installation (ABB)
