ABB posts 26 per cent increase in Q3 net profit

ZURICH: Engineering company ABB Ltd. announced a 26 per cent increase in net profit for the third quarter Thursday but warned that orders for large-scale projects have declined as customers put off making major investments because of the financial crisis.

Profits rose to US$927 million from US$738 million during the third quarter of 2007. Earnings per share increased to US$0.41 from US$0.31.

The Swiss-Swedish electrical engineering firm said it benefited from ongoing demand for reliable electrical power generation, improved industrial efficiency and efforts to lower environmental impact.

``It's too early to say how the recent financial-market turmoil will impact our markets in the short term,'' said Joe Hogan, who took over as chief executive from Michel Demare in September.

Hogan added, however, that he was confident the company will meet its full-year growth targets for 2008.

Revenues rose 22 per cent to US$8.79 billion from US$7.19 billion during the July-September period.

Orders grew by only 7 per cent in the third quarter as ABB failed to match a US$400-million assignment for wind power generation it secured in Germany last year.