English

ABB: increased profitability in challenging markets

Report this content

Full-year 2015 Summary:

  • Next Level strategy delivering positive results
  • Orders and revenues stable order backlog up 5%
  • Operational EBITA margin up 60 bps to 11.8%
  • Operational earnings per share +5% (constant currency)
  • Cash return on invested capital up 70 bps to 13.4%; free cash flow +16%
  • Power Systems ‘step change delivers strong financial turnaround in 2015
  • 7th consecutive dividend increase to CHF 0.74 per share proposed
  • 4 new Board members proposed for election at the next annual general meeting

Q4 Summary:

  • Orders (-2%) reflect challenging market conditions; base orders -6%
  • Operational EBITA margin up 60 bps to 11.7%
  • Power Systems reached target margin corridor; strategic portfolio review of Power Grids on track
  • Accelerated productivity and cost out measures in white collar, supply chain and operational excellence
  • Net income of $204mn including a total $496mn restructuring and related expenses
  • Cash flow from operating activities +18%

Full-year and Q4 financials impacted by currency translation due to strong appreciation of US dollar

“We took decisive actions to improve our customer focus and realized profitable growth in target segments to mitigate the impact of significant market headwinds. At the same time, we simplified the organization, drove productivity improvement and accelerated our cost reductions,” said CEO Ulrich Spiesshofer. “As a result, we increased margin and free cash flow. The successful turnaround in Power Systems demonstrates our execution capabilities and our focus on sustainable value creation. With our strong financial position and a leaner, more market oriented organization we are well placed to manage through the global uncertainties which we will continue to face in 2016.”

The complete press release including the appendices is available at www.abb.com/news

Media Relations
Antonio Ligi, Sandra Wiesner
Tel: 41 43 317 7111
media.relations@ch.abb.com

ABB Asea Brown Boveri Ltd
Affolternstrasse 44
8050 Zurich
Switzerland

Investor Relations
Switzerland: Tel. 41 43 317 7111
investor.relations@ch.abb.com

For further information please refer to http://www.abb.com/news

ABB is on Facebook: www.facebook.com/ABB
ABB is on Twitter: www.twitter.com/ABBgroupnews
ABB is on YouTube: http://www.youtube.com/abb

Tags:

Q4 abb annual results q4 results

Subscribe

Documents & Links