Switzerland, Zurich: ABB reported that their quarterly earnings missed estimates due to charges at the Power Systems unit which brought down earnings.
Second-quarter net income dropped 17% to $ 636 million, according to the company statement. Sales of $ 10.2 billion remained in line with estimates. The Power Systems unit reported a $ 24 million loss in the quarter, while in other divisions, the profitability was stable or higher.
“As said previously, Power Systems is likely to weigh on earnings in the coming quarters.” ABB chief executive officer Ulrich Spiesshofer said. “We are driving the Power Systems turnaround as a top priority and made good progress in lowering the exposure.”
Spiesshofer aims to return the Power Systems unit to profitability after ruling out an exit from the loss-making division which has triggered charges by failing to meet project deadlines.