ABB achieved steady growth in the first quarter

ABB achieved steady growth in the first quarter

the power system business is winning step by step. The plan continues to steadily advance the new stage strategy: internal cooperation wins large orders across power and automation businesses

ABB Group CEO Steve said: we achieved steady growth in the first quarter, including the improvement of net profit and cash flow, It shows our determination to promote profitable growth and sustainable value creation

he said: in a challenging market environment, our large orders doubled and our basic orders also increased steadily. ABB achieved year-on-year organic growth in order volume in the three major markets of the United States, China and Germany, and won key projects with its power and automation product portfolio, which is also ABB's competitive advantage. Thanks to the order reserve and the focus on the growth business field in the overall complex market environment, the sales revenue in the first quarter resumed its growth trend

Steve said: we continue to implement the step-by-step win plan and make progress in the power system business. The complex market environment and challenges in oil and gas and other fields have an adverse impact on the profitability of other businesses of the group. In this regard, we have taken decisive measures to control costs and improve efficiency, which reflects the full implementation of our spare efforts. Overall, we achieved a stable operating EBITDA margin

swift said: the new stage strategy has achieved initial results, which makes us full of confidence in seizing the opportunity to achieve profitable growth. We are actively implementing cost control and other restructuring measures to meet the uncertainties in the future market

summary of prospects

in the short term, the development of macro-economy and geopolitics shows a complex market prospect, and the uncertainty factors further increase. In the United States, macroeconomic indicators show that its economy has maintained a good trend; While China is expected to maintain growth, it will slow down. In the long run, the demand prospects of the three major abb market areas of power, industry, transportation and infrastructure are good. The current oil price and exchange rate changes will continue to have an impact on the company's performance

ABB Group's performance in the first quarter of 2015

Market Overview

the current macroeconomic uncertainty and many challenges in most global markets have a certain impact on the customer demand structure of ABB's three major market areas. Power customers still maintain prudent investment. Nevertheless, they continue to make selective investments in the field of transmission, such as promoting the integration of new energy power generation in the field of transmission. ABB has received large power orders in Norway and Germany, as well as UHV DC transmission equipment and high-voltage cables in China and Denmark

the demand from industrial customers varies with different industries and regions. Industrial customers' demand for improving the efficiency of existing assets through power and automation solutions is stable. The low oil price in this quarter led to a reduction in spending by customers in the oil and gas sector. The demand for flexible automation solutions in general industrial fields such as automobile and food and beverage became a key driving force for the growth of automation business in the quarter

in the first quarter, the market demand for special purpose ships and rail transit solutions increased, which was mainly driven by the demand for higher energy efficiency and reduced environmental impact. The infrastructure and construction markets vary by industry and region, with the Chinese market weakening

orders

the total orders in the first quarter organically increased by 15% year-on-year (flat in USD settlement)

compared with the first quarter of 2014, the basic orders of the four businesses (less than $15million) increased steadily. Affected by the lower disposable expenditure of the oil and gas industry, the basic orders of the process automation business decreased. The power system and process automation business drove large orders (more than $15million) by more than 100%, accounting for 23% of the total orders, and the proportion was 12% in the first quarter of last year

service orders accounted for 15% of the total orders, compared with 18% in the same period last year, mainly due to the sharp increase in the proportion of large orders in this quarter

sales revenue

in the first quarter of 2015, the sales revenue increased organically by 3% year-on-year (decreased by 10% in USD), mainly due to the successful execution of most business reserve orders

the sales revenue of service business increased by 6% (settled in US dollars, decreased by 7%), accounting for 17% of the total sales revenue, and the proportion was 16% in the same period last year

implement the new phase strategy

ABB continued to implement the new phase strategy announced in September last year in the first quarter, and accelerated the creation of sustainable value with its leading power and automation business. The formulation of this strategy is based on ABB's three major areas of focus, namely, profit growth, spare no effort to fully implement and business led cross departmental cooperation

profit growth

in the first quarter of 2015, abb continued to drive growth by expanding market coverage in target regions and industry segments. For example, ABB's first-class product portfolio in the field of solar power generation helped its order volume in the Japanese market achieve double-digit growth for four consecutive quarters. At the same time, abb continues to strengthen its position in the food and beverage industry by providing robots and motion control technology to help customers improve production efficiency and safety. The product portfolio of power and automation also helped the company win more large orders, including Statoil

innovation is still the focus of growth. The company has launched a series of new products, including intelligent transformer sensors, production management software developed for the cement industry, and control products for power generation enterprises and water treatment industry. At the beginning of this month, abb also officially launched the human-machine cooperation dual arm 2 for 3C and other small parts processing and packaging industries Yumi, a robot with inferior jaw quality

exploring new high growth market areas is another driving force for profitable growth. In March this year, abb announced that it had entered into a global partnership with Samsung SDI, the world's leading manufacturer of lithium battery for energy storage, to further expand the field of micro electronics. This cooperation will accelerate the growth of the micro electricity market and bring more feasible electricity computing standards to both emerging and developed countries: GB 16776 (2) 005 gb/t 528 (1) 998 power solutions

spare no effort to fully implement

ABB continues to spare no effort to fully implement in improving customer service, strengthening cash flow and reducing costs throughout the company, and has achieved success

in the first quarter, abb took further measures to reduce structural costs. The newly signed long-term IT infrastructure agreement is expected to help the company significantly reduce it related operating costs within five years

in the first quarter, the company also introduced a salary model to more than 60000 employees, which is more closely linked with personal performance indicators, in order to help the company achieve the goals under the new stage strategy

business led cross department cooperation

the main goal of business led cross department cooperation is to pay more attention to the market and customers, and simplify the process of internal and external collaborative work. The power and automation portfolio gives ABB an important competitive advantage, helping it win a series of project orders, including those in the marine and railway industries. In order to achieve comprehensive, harmonious and sustainable development in these fields, providing integrated and optimized power and automation solutions can help customers achieve higher overall system efficiency, reduce operating costs, and reduce the impact on the environment

actively optimize the business portfolio

ABB further strengthened its product business portfolio in the first quarter through the acquisition of gomtec GmbH, a robot and electromechanical system developer privately held in Germany. This transaction consolidated ABB's leading position in the rapidly growing human-machine collaborative robot market

outlook

in the long run, the demand outlook of the three major abb market areas, power, industry, transportation and infrastructure, remains positive. The driving force of growth comes from the major changes in the power system, the improvement of industrial production efficiency driven by the interconnection of goods, services and people and the development of industry 4.0, the rapid urbanization process, and the demand for higher energy efficiency in the transportation and infrastructure fields

with our good market position, comprehensive market and regional coverage, leading technology and outstanding financial capabilities, abb is sure to seize the opportunity and achieve long-term profit growth

in the short term, the macroeconomic and geopolitical situation is complex, and the development prospect is still uncertain. There is uncertainty in using the windows operating system with a graphical interface. In the United States, macroeconomic indicators show that its economy has maintained a positive trend, and China is expected to continue to maintain growth in 2014 when the growth rate slows down. At the same time, the market is still affected by the slow economic growth in Europe and the tense geopolitical situation in some regions

recent changes in oil prices and exchange rates will also continue to affect the company's performance

for more information about abb, please visit Sina Weibo: @abb China, official: ABB_ in_ china