This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ABB Management Discusses Q2 2012 Results - Earnings Call Transcript

China orders stabilized, particularly in Low Voltage Products, where we had some issues in the first quarter. North America, still strong for us. We saw a rebound in the Middle East, and Europe, steady. I'd say there's a two-tier Europe, between North and South, we'll talk about it. But at least, there was a positive order for the quarter. Order price pressure in power is easing, and I say, slightly, but we do see that easing. Steady Power Project (sic) [Products] margins over the last 3 quarters, and Michel and I will explain that. Operational EBITDA decreased versus the second quarter of last year. Some negative mix, and obviously, the U.S. strong dollar translation, but we saw some good progress quarter-to-quarter.

Thomas & Betts acquisition is completed. We got about 6 weeks in, and we'll walk you through how that looks. And in divisions, delivered really solid cash from operations. But we'll talk to you about some of the cash short fall that we've had and as to why.

Moving to Chart 4. You can see that the orders were up 2% versus second quarter of last year. And then when you look from an organic standpoint, up 9%, and then plus 6% from an overall standpoint. Revenues organic about 3% at $9.7 billion. Our order backlog, there's some questions this morning on order backlog, if you adjust from a U.S. dollar standpoint, minus 3%, but in local currency, we actually saw an increase in our backlog close to $29 billion, overall.

From an operational EBITDA standpoint, our numbers were $1.471 billion, as you can see. That's about minus 5% overall, but minus 9% from an organic standpoint, when you look at the $60 million we received from Thomas & Betts in the quarter. That gives us an operational EBITDA percent of about 15.1% versus 16% of last year. Our net income, down 27%, and cash from operations, down 33%. That will imply, I guess, some explanation, and Michel and I will walk you through that shortly.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs