The figures of 4 units correspond to the set goals; the "Step Change" program is running in PS subdivision

ABB reported stable results for the first quarter of 2014 due to the increased presence in the industrial sectors of early cycle and well-balanced geographical coverage.

The volume of orders in the amount of $ 10.4 billion is about the same as last year despite the small number of large orders from utilities and industrial enterprises of the late business cycle. Revenues totaled $ 9.5 billion, taking into account the growing income Automation and declining revenues for the supply of power equipment, the latter reflects fewer portfolios of orders compared to the same quarter in 2013.
Profitability was higher in Low Voltage Products division and process automation , and stable in the unit equipment for power and discrete automation and motion, after correction of the expected dilutive impact from the acquisition of Power-One.

EBITDA and Group have been affected by the weak performance in the PS and costs associated mainly with projects for engineering, procurement and construction in the field of wind and solar energy , which led to losses in the PS unit in the 1st quarter . Cash flow from operating activities increased in spite of the deterioration in Power Systems.

"Four of our units operate in accordance with the plan , thanks to the combination of large orders get early cycle , stable earnings and sustainable cash flow in the first quarter ," - the President of ABB's Ulrich Shpisskhofer said. "The growth of orders and cash generation in the subdivision Discrete Automation and movement, as well as stable revenue in the division voltage equipment were key figures in the quarter. Equipment for Electric Division maintains stable margins , as in Process Automation division EBITDA margin was at a record level . "
"Together with the sale of HVAC business Thomas & Betts and Solutions business of Power-One, which we announced yesterday, we have made significant progress in the optimization of our portfolio. »

«We are disappointed by the continuing poor productivity of Power Systems division and strictly adhere to the actions aimed at the previously -announced strategic realignment," - said Shpisskhofer . " After a thorough analysis of the situation , the new government initiated a program « Step Change » and has already taken some corrective solutions. They include the termination of participation in EPC- projects on solar energy and further changes in the managerial staff. PS transformation will take longer than originally expected, but we remain confident that the outcome will be a strong and competitive business. "

«Looking ahead, our goals for 2014 are to maintain good results in four of our five divisions and implementing the changes to PS, - he said. “At the same time, our management team has made significant progress in our long-term strategic plan, and we look forward to its presentation at a meeting of investors (Capital Markets Day) in September."