ABB Q4 net profit drops 13%, cuts sales targets

ABB's (ABB) Q4 net profit declined 13% to $525M but met consensus, with earnings hurt by a previously announced charge of $260M after North Sea storms postponed wind-turbine projects.

Revenue grew 3% in dollar terms to a record $11.37B and increased 4% in local-currency terms.

Customers delayed large infrastructure projects in Q4, leading to a 36% drop in bookings of $15M or more. Total orders dropped 5% to $10B.

ABB has lowered its goal for revenue growth to 4-5% for 2011-2015 from a previous target of 7-10%, due to slower-than-expected economic growth around the world.

ABB has proposed a fifth dividend increase in a row, saying it plans to pay 0.70 Swiss francs a share vs 0.68 Swiss francs ($0.78)  per share.

Shares -1.75% premarket. (PR)

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