Azernews.Az

By Bloomberg

ABB Ltd., the Swiss maker of grid connections and robots, reported profit that beat analyst estimates as the power systems division returned to profit helped by rising orders and cost cuts.

Net income jumped 3.7 percent to $564 million in the first quarter, the Zurich-based company said in a statement. The average estimate of 13 analysts in a Bloomberg survey was $544 million.

“We are driving cost out and implementing additional restructuring to address market uncertainties in the quarters ahead,” Chief Executive Officer Ulrich Spiesshofer said in the statement. “Mix effects and market challenges, such as oil and gas, weighed on margins” outside the power systems unit, he said.

Spiesshofer has focussed on improving the profitability of the power systems since taking over at ABB in 2013. The unit, which has grappled with delays to complex renewable energy project, saw an 61 percent increase in orders in the three months through March.

While ABB doesn’t report in Swiss francs, the strengthening of the U.S. dollar has also posed a challenge to the company, with currency shaving 10 percent off revenue in the first quarter. The dollar has gained 10 percent against the euro this year and ABB’s sales fell 10 percent to $8.6 billion in the quarter.

ABB shares have declined 0.3 percent to 21.08 francs this year before today, even amid a $4 billion share buyback program intended to boost the stock’s performance.