Swiss-based power and automation group ABB said it expects growth to be slower than expected as it enters a “challenging” 2014.
ABB, which unveiled its full-year results today, had already flagged up a
$260m hit in fourth-quarter earnings at its Power Systems unit as a result of
operational issues at North Sea offshore wind grid-link projects – issues it
says it is tackling under a new management team.
Today it said “greater
order selectivity” in Power Systems, plus lower-than-expected GDP growth and
customer capital expenditures in 2013, means compound annual growth rate (CAGR)
excluding acquisitions in the 2011-2015 period is likely to be 4% to 5%.
The group had previously
put out a CAGR target of 5.5% to 8.5%.
ABB said: “The company
expects 2014 to be a challenging year for revenue growth but expects to return
to its pre-2013 growth trajectory in 2015.”
However, the Zurich-based
group said the long-term outlook for its business remains “clearly positive”
thanks to factors such as action to tackle global warming and the need to upgrade
ABB made a net profit of $2.79bn in 2013, 3% up on the 2012 figure.