ABB announces Q3 profits of $1.03 bn

ABB announces Q3 profits of $1.03 bn

Zurich, Switzerland: Swedish-Swiss engineering group ABB posted a net profit up 12% at $1.03 billion (699 million euros) for the third quarter, in line with expectations, it announced Thursday.

The third quarter profit compared with $927 million for the same period last year.

The group set aside $850 million in December for likely costs from US and EU probes into alleged cartel activities, a tax dispute and asset writedowns, it said 10 days ago. But it has now reduced the provisions to $380 million.

The group was fined 33.75 million euros ($50 million) by the European Commission over anti-competitive practices in the power transformer market.

ABB added that its third-quarter earnings would be hit by an increase in charges incurred by its business in Russia.

“As a result, ABB continues reviewing the situation and assessing its business model in Russia," it said.

In July, the group posted net profits of $675 million for the second quarter.