ABB is seeing a "robust" market situation with so far little impact on customer demand from the uncertainties caused by US tariffs, the Swiss engineering company said today, as it reported its third quarter results.
ABB, which makes factory robots, as well as motors and drives for factory production lines, said operating earnings before interest, tax and amortisation (EBITA) rose 12% to $1.74 billion for the three months to the end of September.
The figure was slightly above forecasts for $1.70 billion expected in a company-compiled consensus of analysts.
Revenue at the company, which also makes electrification systems used in data centres, rose 11% to $9.08 billion, beating forecasts for $8.88 billion, while orders rose 12%.
Its chief executive Morten Wierod said he was seeing a "robust overall market situation" with customers still spending on electrical power and automation.
"US tariff-related market uncertainties remain, but so far we have not seen any material impact on demand or profitability," Wierod said.
ABB said its orders in the US increased 27% during the quarter, with steep growth in all business areas, while business boomed in Brazil with orders 38% higher.
In contrast, China suffered a 4% drop in new business due to a steep decline in process automation and electrification, while orders in India were down 7%.
ABB's results give an insight into the health of the broader industrial economy, with its products used to electrify and control buildings, mines and data centres.
Bank Vontobel Analyst Mark Diethelm said the results were "a touch ahead of expectations" on all measures, as short-cycle demand helped ABB, referring to smaller scale products which have shorter lead times, such as motors and drives.
The results were the first since ABB said it would sell its robot business to SoftBank Group in a $5.4 billion deal.
For the fourth quarter, ABB said it expects its comparable sales to grow in the mid-single digit percentage range.
