ABB says Q1 net profit dropped 35 pc

ZURICH/SWITZERLAND: Swiss-based electrical engineering giant ABB said on Thursday that its first-quarter net profit dropped 35 per cent because of declines in sales of standard products and base business.

The company posted a net income of $652 million, compared with $1 billion in the first quarter of 2008.

It said revenues were down 9 per cent to $7.2 billion. The sale of standard products and base orders that convert into revenues within the same quarter declined significantly compared with the same quarter in 2008.

Orders decreased by 16 per cent in US dollar terms to $9.2 billion, but that the oil and gas sectors placed large orders. It said the order decline also reflects lower prices because of decreased costs of its raw materials.

"Demand in the power, oil and gas sectors was relatively resilient in the quarter, which allowed us to maintain orders close to the near-record level of a year ago" said Chief Executive Joe Hogan.

Hogan said the company was "determined to stay ahead of the market on cost while remaining alert for opportunities to grow the business."