ABB slips after weak Q1 results

The company announced its Q1 results after market hours on Wednesday, 8 May 2013.

Meanwhile, the BSE Sensex was down 8.39 points, or 0.04%, to 19,981.79.

On BSE, 4,405 shares were traded in the counter compared with average volume of 13,252 shares over the past two weeks.

The stock hit a high of Rs 538.75 and a low of Rs 514.80 so far during the day.

ABB said improvements achieved through cost optimisation and operational excellence were eroded by low price realisation and tight market conditions.

ABB's order intake declined 8% to Rs 1531 crore in Q1 March 2013 from Rs 1663 crore in Q1 March 2012. The company said short cycle orders registered strong growth even as major project decisions were delayed with customers continuing to exercise caution on large investments. ABB said that the company continues to assess risk-return profile especially of large projects in the current market environment.

ABB said its order backlog continued to remain strong at Rs 8229 crore as on 31 March 2013, compared with order backlog of Rs 9028 crore as on 31 March 2012.

"While there appears to be a pause before the economy recovers, we continue to focus on cost and growth, while addressing emerging opportunities such as renewables and energy efficiency by introducing technology and products to meet the changing market needs," said Bazmi Husain, Managing Director, ABB, India.

ABB is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 145,000 people.

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