Swiss multinational ABB Group has had a tough second quarter. The company has stated in its Q2, 2015, report that macroeconomic and geopolitical developments were leading to continuing uncertainty in the market.
Although the company has reported continued revenue growth of 3 percent compared with Q2, 2014, strong appreciation of the dollar has impacted currency translation and shows a 10 percent decrease in revenue in US dollar terms.
Compared with Q1, 2015, ($8,555 million) the revenue in Q2, 2015 has increased by $610 million to $9,165 million.
ABB has also reported a 4 percent drop in orders in Q2, 2015, ($8,996 million) compared with Q2, 2014 ($10,567 million). It is also a decrease from the last quarter which recorded $10,404 million in orders. The figure was a 15 percent increase quarter on quarter from Q1, 2014.
ALSO READ: ABB wins order to build substation for grid integrating solar power
One encouraging factor in the first half of 2015 is that it has shown positive growth in both quantum of orders and revenues compared with the first half of 2014.
While H1, 2014, recorded orders to the tune of $20,925 million, H1, 2015, recorded $19,400 million. Although the figure is lower in US dollar terms, the company has reported that it represents a 6 percent increase in orders.
Similarly, revenue-wise ABB has reported a 3 percent increase from $19,661 million in H1, 2014, to $17,720 million in H1, 2015.
According to ABB, investors in infrastructure-dependent power transmission projects have been cautious with their investments in the sector. Among large scale projects that ABB won in the just-concluded quarter are large orders in the United Kingdom and France to connect offshore wind farms to the mainland grid, and an $85-million substation order in Qatar.
ABB saw growth in its orders base in Europe. The company has reported that double-digit growth in countries such as Italy, the UK, Norway, Switzerland and Sweden led this growth.
ALSO READ: ABB to supply transformers for French offshore projects
Compared with Q2, 2014, Americas gave ABB fewer orders in Q2, 2015. At the same time, Asia, the Middle East and Africa kept a steady pace in orders. A decrease in demand from China was offset by steady increases in orders from India, Saudi Arabia, the UAE and Australia, ABB has reported.
With the company working toward better market penetration through focus on higher growth, lower risk and greater competitiveness it expects to pull through to better conditions over the ongoing quarter.
In the past two months the company has won a few offshore wind project contracts besides business in other segments such as line voltage regulators, and cable systems.
Ajith Kumar S
editor@greentechlead.com