Offshore wind costs dampen ABB earnings

SWITZERLAND: ABB's Power Systems division broke even in the third quarter as net income slipped 94% due to costs in offshore wind.

by David Weston 22 October 2014

ABB Power Systems broke even in the third quarter

ABB Power Systems posted pre-tax earnings of $9 million for Q3, down from $141 million in the same period last year.

The connection specialist said the decrease in earnings was due to "project-related costs" in offshore wind.

Power Systems' order book swelled in the quarter as well. It received $2.2 million in orders in the third quarter, compared to $1.2 million in Q3 last year.

In the quarter, ABB was handed deals to supply cables to Dong Energy's off the UK's west coast. It will also deliver a transmission link for Vattenfall's in the German North Sea.

ABB group net income fell 13% for the quarter from $1.6 billion to $1.4 billion.