ABB reports 9% growth in orders in FY14

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Updated Fri, 13 Feb 2015 10:11:34 GMT

ABB has reported its results for FY14 and 4Q14, showing a 9% growth in orders for the full year. Large orders (those above US$15 million) grew by 50% across the year and all regions experienced steady to higher orders despite a challenging market environment. 2014 saw base orders 4% higher than 2013, with growth in each quarter.

“2014 was a demanding year where we had to overcome the challenges of Power Systems and a low order backlog,” said CEO Ulrich Spiesshofer. “We delivered on our ambition to achieve full-year profitability in Power Systems and took decisive actions to drive organic growth, cost-out and cash generation.

“Our solid progress on the Next Level strategy puts us in a strong position to manage the global uncertainties heading into 2015. Our proposal to increase the dividend for the sixth consecutive year demonstrates our commitment to long-term sustainable value creation.”

Revenues and operational EBITDA were lower due to the lower opening order backlog and project-related charges in Power Systems, but strong business execution resulted in higher full-year operating cash flow generation.

“We delivered on our ambition to achieve a break even result for Power Systems for the full year,” Spiesshofer continued. “The other divisions all generated steady comparable margins. We improved cash generation, and for the 6th consecutive year took out more than US$1 billion in costs which shows that our relentless execution focus is really paying off.”