- Existing-Home Sales Jump to 2-1/2 Year High
- Wave of Debt Payments Facing US Government
- US Job Losses to Bottom out Next Quarter: NABE
- Obama Jobs Forum May Be More Political Than Practical
- Late Payments on Credit Cards Drop in Third Quarter
- Suze Orman’s 'A Healthier, Wealthier You'
- Latest Holiday Drinks: The Madoff...and the TARPatini
- Madoff Trustee, Law Firm Submit $22.1 Million Bill
- JPMorgan's Dimon Could Succeed Geithner: Report
- Expect a 'Square Root-Shaped' Recovery: Chief Investor
- Madoff—The Holiday Drink
- HP to Feed on Enterprise Spending Next Year: Tech Analyst
- Busch: Markets Smell a Country Rat
- Schork Oil Outlook: Mission Impossible For The Bears?
- S&P Stocks Trading at New 52-Week Highs
- Losey: Asset Allocation At Retirement
- Farrell: Obama Hectored, Ignored and Restricted?
- Don't Dwell on Investment Mistakes; Move on, Like Buffett
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Existing-Home Sales Jump To Highest Level in 2-1/2 Years
- Start-Up Proves Everything Really Is Better With Bacon
- Wave of Debt Payments Facing US Government
- Wall Street Finds Profits by Reducing Mortgages
- Cadbury Hits New High as Bidders Circle
- China Asks Its Banks to Slow Down
- MBS Buyback Program Should be Extended: Fed's Bullard
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.
- Warren Buffett and Bill Gates discuss the economy and other subjects with CNBC's Becky Quick.
- The show attracts a big TV audience every year, but this year it may take on even more importance.
- …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
- Congressman Ron Paul explains to Squawk Box why he’s pushing legislation to audit the Federal Reserve.
- A Macau casino will open Asia's first Michael Jackson shrine after its owners made a key purchase at a US auction.
- CNBC’s technology reporter Jim Goldman guides you through the best gadgets to buy this holiday season.
Data is a real-time snapshot *Data is delayed at least 15 minutes