ABB Grain Ltd. Q2 2010 Earnings Call Transcript

ABB Grain Ltd. (ABB)

Q2 2010 Earnings Conference Call

July 22, 2010 09:00 am ET

Executives

Joe Hogan - CEO

Michel Demare - CFO

Analysts

Ben Uglow - Morgan Stanley

Olivier Esnou - Exane

Mark Troman - Bank of America/Merrill Lynch

Andreas Willi - JPMorgan

Axel Funhoff - ING

Martin Wilkie - Deutsche Bank

James Moore - Redburn Partners

Thomas Baumann - Neue Zurcher Bank

Simon Smith - Credit Suisse

Colin Gibson - HSBC

Mark Fielding - Citigroup

Presentation

Operator

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Good morning or good afternoon. I’m Stephanie. The Corus call operator for this conference. Welcome to the ABB Second Quarter 2010 Results Analysts and Investor Conference Call, hosted by Mr. Joe Hogan, CEO. At this time, I would like to turn the conference over to Mr. Joe Hogan, CEO of ABB. Please go ahead Sir.

Joe Hogan

Hi, good afternoon and thanks for joining us today. Michel Demare is with me here too. We are going to review our second quarter results as you know, and as always my comments in the call refer to the presentation that you can download from our website at abb.com. Please refer to chart two for the Safe Harbor text covering any forward-looking statements made today. And I’ll start with a summary of our second quarter performance on chart three. ABB delivered a strong quarterly performance as our costs pick up program in June succeeded in keeping our profitability well within our target range.

We saw a further increase in investor demand for ABB’s energy efficiency solutions, and lifted motors in the automation division by more than 20%. As a result, base orders grew by 15% in local currencies compared to the same quarter in 2009 and were 4% higher than Q1 of this year. At the same time, utilities continued to delay many of our investments into power transmission which is reflected in the 37% decline we saw in large orders.