The most popular ABB Group balanced layout promote

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ABB Group's balanced layout promoted the performance improvement in the second quarter

despite the uncertain market environment, the group's sales revenue, operating EBITDA and net income per share still achieved growth

the leading cycle product performance in several major markets rose orderly

orders (changes) reflect ABB's more cautious choice of projects, The investment in bulk fixed assets in the power and industrial fields decreased

Tongbei contributed a lot to the business growth, and the integration was on track after the merger

Zurich, Switzerland. On July 25, 2013, abb, the world's leading power and automation technology group, today announced its performance in the second quarter of 2013. Despite the challenges in the global market, it still achieved the growth of the group's sales revenue and profit

joe Hogan, CEO of ABB, said: our balanced global regional layout and product portfolio continue to have a positive impact on business growth. In some key industries and major regions including China, the order volume has increased. Compared with the first quarter, the orders of most product businesses showed an orderly growth momentum

at the same time, the market environment is still uncertain. By implementing sufficient order reserves, we have ensured the increase of sales revenue and profits, and maintained the profit level by continuing to control costs

at the end of last year, we started the calculation standard: GB 228.1 ⑵ 010 strategic adjustment of power system business, focusing on project selection and profitability. Although there has been a decline in order volume, this strategic adjustment has achieved initial results, and the execution of order reserve of the business department has reaped higher gross profit

as the global macroeconomic situation is still uncertain, the signing of large orders is delayed, which affects the order volume in this quarter. However, the potential market demand driving factors remain unchanged. In the first half of 2013, we still achieved an order to shipment ratio of 0.99. If the power system business department is not calculated, the order to shipment ratio will reach 1.06

in addition, we can see that Tongbei has made positive contributions to business growth. After the merger, (1) the integration of manufacturers producing automobile suspension springs and motorcycle damping springs is progressing steadily. The two major power business units have achieved solid operating EBITDA margins; The sales revenue growth of service business is higher than the organic growth of overall sales revenue; The increasing net recommendation value (customer satisfaction professional evaluation method) shows that we are also making progress in improving customer satisfaction

our outlook for the second half of the year remains unchanged from the forecast made at the end of the first quarter. Macroeconomic data are more ambiguous, making it difficult to predict the signing time of orders, especially for large project orders. However, our sufficient order reserve will continue to mitigate the impact of these uncertainties to a certain extent. At the same time, we will continue to focus on the balance between cost control and business growth and strive to improve customer satisfaction. We fully believe that the balanced layout of business and regions will continue to bring more profit growth opportunities to the group

main data

business growth status

the market environment in the second quarter was still complex. Although the selective electricity investment demand of some countries, industrial fields and power companies maintained growth, due to the challenging overall economic environment and the low growth of electricity consumption, some major transmission investment projects were postponed; Industrial production in many mature economies continued to slow, and emerging markets lowered their growth expectations

abb's wide coverage in terms of region, technology and channel partially offsets the impact of market fluctuations, and enables the company to explore more opportunities to achieve profitable growth. For example, in the U.S. construction market, China's industrial sector, and the automotive industry in mature and emerging markets around the world, the company's relevant business orders have increased. Orders in major European markets, including Germany and Sweden, rose, partially offsetting the continued weakness in the southern European market

excluding M & A factors, ABB's order volume decreased by 11% year-on-year (including 8% for Tongbei business), mainly due to a 45% decrease in large orders (more than US $15million). Large orders accounted for 9% of the total orders, up from 15% in the same period last year

excluding M & A factors, the basic orders (the order amount is less than US $15million) decreased by 5% in this quarter (flat if including Tongbei business), which partly reflects that the power business has strengthened the selection of projects. However, the orders of most product business departments increased, and the orders of service business increased by 3%, accounting for 17% of the total orders, compared with 16% in the same period last year

thanks to sufficient order reserves, the sales revenue in this quarter increased by 6% (organic growth of 2%). Tongbei contributed about USD 640million of sales revenue to the group. The sales revenue of the service business increased by 3% in the quarter

regional order amount and sales revenue

mainly due to the decrease of large orders, the order amount in different regions decreased. In Europe, as the investment of power companies is still cautious, the overall order volume has declined. Orders for automation business in Europe remained stable year-on-year, while orders in major markets such as Germany and Sweden increased in this quarter. Organic orders in the Americas declined as electricity, oil and gas customers reduced capital expenditures. Compared with the strong performance in the same period last year, the orders in Asia decreased by 10% year-on-year. Although the orders in China increased, it was not enough to offset the decline in the challenging Indian market and some other countries' large orders for 311 exterior wall internal insulation boards. Although Egypt and Saudi Arabia achieved order growth, the overall order volume in the Middle East and Africa region decreased

merger and acquisition

in April this year, abb announced that it would acquire power one, a US solar inverter manufacturer, for about US $1billion. The deal aims to build ABB into a global leader in the renewable energy market that is expected to maintain high growth. At present, the transaction has been approved by shareholders and regulators. It is expected that the commodities to be sold in the market in the near future will be completed in accordance with the law of "one price, one goods"


the long-term driving force of our business growth, such as the demand for improving industrial productivity, more efficient and reliable transmission of electricity, and the growth of renewable energy, remains unchanged, while the short-term trends, such as the growth of industrial production and government policies, will become the main driving force of market demand in the second half of 2013. In the second half of 2013, the market demand trend did not change significantly from the trend in the first half of 2013

as the market uncertainty will continue in the near future, we will continue to focus on the implementation of large reserve orders, and make full use of the group's rich product portfolio and balanced regional market layout to fully tap the profitable growth potential consistent with the medium-term development goals

we are implementing a series of measures to improve profitability, optimize project selection and implementation. Improving the sales revenue of service business, ensuring the synergy benefits brought by recent acquisitions, continuously improving customer satisfaction, and bringing technological innovation achievements to the market will all become important pillars for us to achieve performance growth and profit goals

we will continue to promote cost savings and improve productivity by improving supply chain management, improving quality, and improving the return on investment in sales and R & D, which is equivalent to saving% of the sales cost every year. We will continue to strive to return higher cash dividends to shareholders and improve the return on capital investment in organic growth and non organic growth

abb is a leading enterprise in the field of power and automation technology, ranking among the global top 500. Abb is committed to helping power, utility and industrial customers improve their performance while reducing their impact on the environment. ABB Group operates in more than 100 countries and employs 145000 people. ABB has a full range of business activities in China, including R & D, manufacturing, sales and engineering services. It has about 19000 employees, 36 local enterprises and sales and service networks in 90 cities across the country. To learn more about abb, please visit. Sina Weibo: @abb China

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