ABB warns on profit after being hit by coronavirus and low oil prices

ABB on Monday became the latest company to warn about the impact of the coronavirus on its profits, with the Swiss engineering group saying all of its businesses would suffer in the first quarter. The maker of industrial robots, factory drives and chargers for electric cars said it was also being hit by low oil prices as it ditched its guidance for the year.

"Although it is not yet possible to determine the exact impact of COVID-19 on ABB's first-quarter results, ABB expects revenues to decline in all its businesses relative to a year ago, while orders are somewhat less impacted," ABB said in a statement. Profitability would also decline as the company struggled with lower production volumes, said the company.

ABB said it expected its Robotics & Discrete Automation business, which was already facing lower demand from the automotive sector, to have 20% fewer orders and sales during its first quarter compared with a year earlier. ABB had in February said it expected weaker growth in Europe and the United States, adding China may be impacted by the virus outbreak.

Since then, the company said it had experienced a decline in trading conditions due to the virus outbreak, worsened by the weakening oil price which reduces the ability of customers to pay for new investments. ABB's board of directors and executive committee had decided to take a voluntary 10% pay cut for the duration of the crisis, with the money going towards efforts towards fighting the virus, Chief Executive Bjorn Rosengren said.

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