The recession battered Swiss automation and engineering giant ABB in the second quarter, as revenue fell 12% to $7.9 billion and net profit dropped by 31% to $675 million amid layoffs.
The company also signaled continued bumpiness as new orders for the quarter ended June 30 plunged 35% year over year to $7.3 billion.
“I can’t call the bottom of a market in our business right now,” CEO Joe Hogan said on a conference call with journalists. He said the company’s robotics unit looks particularly vulnerable, as “both the automotive and general industry markets have basically collapsed.” ABB plans to further restructure that division, but is still investing in robotics product development, he said. Robotics is the only division that is not on target to meet its 2011 goals, the company said in a statement.
Company-wide, ABB spent $120 million on an ongoing, $1 billion restructuring program in the second quarter, contributing to the profits decline. Cuts have included plant closures and layoffs in Europe and North America as well as reduced working hours in various locations, Hogan and CFO Michele Demaré told journalists.