Trading conditions in the quarter were in line with trends seen in the third quarter. High levels of industrial activity in most regions supported ABB's short- and mid-cycle businesses in both the automation and power sectors. In addition, the company won a large number of power infrastructure orders in Europe and the Middle East during the fourth quarter.
On that basis, the company expects to report double-digit growth in orders (in local currencies) compared to the same quarter a year earlier, as well as a double-digit increase in earnings before interest and taxes (EBIT as reported) and net income. The company also expects to report single-digit local-currency revenue growth. Included in fourth-quarter 2010 reported EBIT will be charges of approximately $120 million in the Power Systems division, most of which are related to a cable project that was the subject of previously-announced provisions.
For 2011 the company reiterated its outlook that continued industrial growth is expected to support its short- and mid-cycle businesses in power and automation. ABB also expects a broad recovery in utility investments for power transmission equipment later in 2011.
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 117,000 people.
