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by Mark Halper, ME Editorial Staff
Posted on Thursday, July 24, 2008 2:13:56 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | Orders from emerging markets eclipse those of more established geographies, although problems flare as Libya detains Swiss employee. |
| Keywords: | ABB profits, ABB earnings |
Swiss automation and engineering giant ABB defied the global economic quagmire in the second quarter ended June 30, 2008, reporting a 34% jump in net profit to $975 million on a 27% leap in revenue to $9 billion. Translated into local currencies, revenue growth was still in the double digits, but a more modest 15%, the company said.
ABB also reported that, for the first time, orders from emerging markets, such as China, India, and the Middle East, exceeded those from mature market countries, bringing in 51% of the total. But in a reminder that expansion comes with risks, the company on Tuesday temporarily closed its office in Tripoli after Libyan authorities detained a Swiss ABB employee as tensions grew over the arrest in Switzerland of one of Muammar Gaddafi's sons. ABB is working with the Swiss Ministry of Foreign Affairs to resolve the matter, the company said.
On a conference call to discuss the quarterly results, Interim CEO Michel Demaré attributed the overall financial gains, in part, to global demand for products that improve energy efficiencies in the face of surging oil and gas prices. "High energy costs continue to drive demand," Demaré said.
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