- Look Ahead: Market Taking Its Cues From Fed Statement
- Bailed-Out Banks Preparing Pay Bonanza: Study
- Oracle-Sun Micro Deal May Be Rejected by EU: Report
- Berkshire's 15 Biggest Stock Holdings
- Cramer: The 8 Stocks That Control the Market
- Buffett: Berkshire Business Doing 'Just a Tick Better'
- Berkshire for $65.30 a Share? 50-1 Stock Split Planned
- Baidu's Challenge: Expand Beyond Its Success in China
- GM Monthly Sales Increase; Ford Sales Edge Lower
- Final World Series Games Big Money Makers
- Best Buy To Embed Digital Download Platform on Devices
- Options Trader Targets Precious Metal Surge
- October Shows Auto Rebound Will Be Slow
- The Silencing of Paul Volcker?
- CNBC Transcript: Warren Buffett Explains His Railroad 'All-In Bet' on America
- CIT's Retail Impact?
- M&A: Signs of Strength?
- Crescenzi: Fed Exit Best As Process, Not Event
MOST SHARED
- US Commercial Property Up in Third Quarter: Index
- Lack of Paid Sick Days May Worsen Flu Pandemic
- AT&T Sues Verizon Over 'Misleading' Wireless Ads
- The World's Most Secretive Tax Havens
- Ford CEO: We're on a Steady Trajectory of Growth Now
- US Economic Growth Could Accelerate After Strong Reports
- Pending Home Sales Rise for Eighth Straight Month
- CIT Group Files for Bankruptcy Protection
- Israel: Leader of Business Innovation
- PepsiCo misplaces letter, faces $1.26 bln judgment
Text Size 
Swiss engineering group ABB stuck to its cautious outlook for the rest of the year and 2010 as third-quarter orders slumped 21 percent.
 |
The seller of power equipment to utilities as well as to oil and gas companies posted an expected third-quarter net profit of $1 billion on Thursday, helped by a $380 million cut in provisions.
ABB, which competes with Germany's Siemens and France's Areva in electricity transmission and distribution equipment, said the outlook for its business remained uncertain over the rest of 2009 and 2010.
But the group confirmed its targets for 2007-2011. ABB is aiming for revenue growth of between 8 percent and 11 percent and for an earnings before interest and tax (EBIT) margin of between 11 and 16 percent in the mid-term.
ABB's conservative stance contrasts with rival Schneider, which earlier this month raised its full-year margin forecast on the back of an improving macro-economic environment.
ABB is looking to cut costs by $2 billion by the end of 2010 to offset the impact of crumbling demand in the industrial, construction and automotive markets as a result of tighter credit markets and the economic downturn.
The group said it had already cut more than $1 billion in the first three quarters, putting it ahead of schedule.
Orders fell to $7.1 billion, meeting the average forecast in the Reuters poll.
- These four sectors will be the next to lead the market.
- These executives got the largest pay packages of the last 10 years.
- People who are scared of flying can now press a button on their iPhone to help them deal with their panic.
- A Harvard professor’s unusual confectionary is blowing away chocolatiers in Paris.
- CNBC’s Darren Rovell corrects his assertion on NYC Marathon men's winner Meb Keflezighi’s nationality.
- How much would you pay for a motorized La-Z-Boy? An eBay auction for a police-confiscated 'DWI' chair is fetching high dollars.
Data is a real-time snapshot *Data is delayed at least 15 minutes