Latest news with #ABB
Yahoo
a day ago
- Business
- Yahoo
ABB CEO Morten Wierod on Data Centers, Automation Demand
Shares of Zurich-based industrial supplier ABB rallied Thursday morning after it reported record order intake in the second quarter and profit margins that surpassed views. The company says it has seen rising demand for automation tools and data center-driven investments in electrical grids. CEO Morten Wierod told Bloomberg TV the electrification unit, which supplies power companies, saw double-digit growth. He spoke to Bloomberg's Tom Mackenzie on "Daybreak Europe." Sign in to access your portfolio
CNBC
2 days ago
- Business
- CNBC
The impact of tariffs is starting to show up in Europe's company earnings
Earnings season has kicked off in Europe , and the impact of U.S. tariffs are beginning to show up in the hard numbers. That has now made analyst consensus — which just last week predicted a mild 0.2% dip in profits for companies on the Stoxx Europe 600 index — forecast a 0.7% year-over-year decline, according to LSEG data. The gloomier forecast comes as a growing number of European industrial and consumer giants report that tariffs are hitting sales, raising costs, and cooling the investment environment. Manufacturing The auto industry is on the front lines of the trade conflict. Jaguar Land Rover said its retail sales plunged 15.1% in the quarter ending June 30. The British carmaker, owned by India's Tata Motors , attributed the slump to a "pause in shipments to the US during April 2025 following the introduction of US import tariffs." Similarly, Sweden's Volvo Group is scaling back its North American operations in response to weak demand. "Demand in North America has been weak in the wake of uncertainty surrounding both tariffs and the [Environmental Protection Agency] 2027 emissions regulations," said Martin Lundstedt, chief executive of the truckmaker, confirming the company is "reducing production capacity there to adapt." The uncertainty from the trade war has also led to customers of major companies to delay purchases. Norway's Tomra Systems , which makes machines used in recycling waste, said its order intake has been affected by "macroeconomic and tariff uncertainty which is postponing customers' investment decisions." This sentiment was echoed by Swiss industrial giant ABB , which noted that customers for its robotics division are in a "wait-and-see mode on the back of continued tariff-related uncertainties," causing some projects to be delayed. However, across the group, ABB had record second-quarter orders. Consumer goods For other companies, tariffs are translating directly into higher costs. Consumer-goods maker Essity , which produces incontinence pads under the brand TENA, reported that while it managed to raise prices, it was to offset "increased costs of goods sold, including trade tariffs." Barry Callebaut , the world's largest chocolate maker, cited "particular tariff-related uncertainty in North America" as a factor in its 9.5% third-quarter volume drop, forcing it to revise its full-year guidance downwards. Even Europe's financial sector does not appear to be immune. Nordea Bank said its market-making business was "impacted by volatility due to tariff uncertainty," while Investor AB noted that the profit margins of its medical-device subsidiary Molnlycke were squeezed by a "smaller negative impact from tariffs." Tariffs 'fully offset' Not all companies are equally affected, however. Industrial group Sandvik reported a "swift response to tariffs, fully offset in the quarter." Swiss pharmaceutical giant Novartis also said tariff are not expected to hit its finances this year. "We have adequate inventory in the U.S. for this year and feel fully confident that for this year any tariffs would not impact our guidance," Vasant Narasimhan, chief executive of Novartis, told CNBC's Karen Gilchrist. "We're moving as fast as possible to ensure over the next few years we're able to produce all our medicines for the U.S. in the U.S. and fully mitigate tariffs." — CNBC's Karen Gilchrist contributed reporting.
Reuters
2 days ago
- Business
- Reuters
European shares see first daily gain in five on strong earnings
July 17 (Reuters) - European shares snapped a four-day losing streak on Thursday, boosted by gains in industrials ABB and Legrand after they reported positive earnings news. The pan-European STOXX 600 index (.STOXX), opens new tab closed 1% higher. Most major regional bourses also gained, with Germany benchmark DAX (.GDAXI), opens new tab gaining 1.5%, while France's CAC 40 (.FCHI), opens new tab added 1.3%. Swiss engineering group ABB (ABBN.S), opens new tab jumped almost 10% after posting its highest quarterly order intake yet, driven by demand for products used in data centres to support artificial intelligence. France's Legrand ( opens new tab gained close to 9% after the electrical infrastructure provider hiked its annual sales target driven by strong growth in North American data centre segment. Rival Schneider Electric ( opens new tab also jumped 7.7%. European chipmakers recouped some losses from the previous session with TSMC ( opens new tab, the world's main producer of advanced AI chips, posting record profit in the second quarter boosting sentiment. ASML ( opens new tab rose 3.9%, following an 11% drop on Wednesday. Ocado (OCDO.L), opens new tab climbed 18.5% after the online supermarket reported a 77% rise in first-half underlying earnings and said its priority is to generate cash in its next financial year. The latest forecasts had shown that the outlook for European corporate health has deteriorated, with expectations of a drop of 0.7% year-on-year in second-quarter earnings, according to LSEG I/B/E/S data. Investors continued to await clarity on U.S.-EU trade talks with the bloc preparing retaliatory measures in case negotiations with Washington failed. "Markets are still pretty optimistic that this may be the case and that things will progress in the next two weeks," said Daniela Hathorn, senior market analyst at "We've seen in the past, and even in Trump's first term, the amount of times that he actually threatened action and what he delivered was very limited." European equities fell sharply on Wednesday after Bloomberg reported that Trump is likely to fire Federal Reserve Chair Jerome Powell, but Trump later said he is not planning to do so. Meanwhile, Britain and Germany signed a wide-ranging friendship treaty that deepened ties in areas including defence and transport as UK attempts to reset ties with the EU. Among other moving stocks, Tomra Systems ( opens new tab dropped 13.3%, the worst day since October 2023, after the Norwegian group posted a second-quarter net sales miss. Swedish carmaker Volvo Cars ( opens new tab advanced 7.9% after reporting a sharp decline in second-quarter operating profit that still exceeded analyst expectations. Also on Thursday, U.S. June retail sales data showed retail sales rebounding more than expected in June.
Business Recorder
2 days ago
- Business
- Business Recorder
European shares gain on strong earnings
FRANKFURT: European shares snapped a four-day losing streak on Thursday, boosted by gains in industrials ABB and Legrand after they reported positive earnings news. The pan-European STOXX 600 index closed 1% higher. Most major regional bourses also gained, with Germany benchmark DAX gaining 1.5%, while France's CAC 40 added 1.3%. Swiss engineering group ABB jumped almost 10% after posting its highest quarterly order intake yet, driven by demand for products used in data centres to support artificial intelligence. France's Legrand gained close to 9% after the electrical infrastructure provider hiked its annual sales target driven by strong growth in North American data centre segment. Rival Schneider Electric also jumped 7.7%. European chipmakers recouped some losses from the previous session with TSMC, the world's main producer of advanced AI chips, posting record profit in the second quarter boosting sentiment. ASML rose 3.9%, following an 11% drop on Wednesday. Ocado climbed 18.5% after the online supermarket reported a 77% rise in first-half underlying earnings and said its priority is to generate cash in its next financial year. The latest forecasts had shown that the outlook for European corporate health has deteriorated, with expectations of a drop of 0.7% year-on-year in second-quarter earnings, according to LSEG I/B/E/S data. Investors continued to await clarity on US-EU trade talks with the bloc preparing retaliatory measures in case negotiations with Washington failed. 'Markets are still pretty optimistic that this may be the case and that things will progress in the next two weeks,' said Daniela Hathorn, senior market analyst at 'We've seen in the past, and even in Trump's first term, the amount of times that he actually threatened action and what he delivered was very limited.' European equities fell sharply on Wednesday after Bloomberg reported that Trump is likely to fire Federal Reserve Chair Jerome Powell, but Trump later said he is not planning to do so. Meanwhile, Britain and Germany signed a wide-ranging friendship treaty that deepened ties in areas including defence and transport as UK attempts to reset ties with the EU. Among other moving stocks, Tomra Systems dropped 13.3%, the worst day since October 2023, after the Norwegian group posted a second-quarter net sales miss.
Business Times
2 days ago
- Business
- Business Times
Europe: Shares see first daily gain in five on strong earnings
[BENGALURU] European shares snapped a four-day losing streak on Thursday (Jul 16), boosted by gains in industrials ABB and Legrand after they reported positive earnings news. The pan-European Stoxx 600 index closed 1 per cent higher. Most major regional bourses also gained, with Germany benchmark DAX gaining 1.5 per cent, while France's CAC 40 added 1.3 per cent. Swiss engineering group ABB jumped almost 10 per cent after posting its highest quarterly order intake yet, driven by demand for products used in data centres to support artificial intelligence. France's Legrand gained close to 9 per cent after the electrical infrastructure provider hiked its annual sales target, driven by strong growth in the North American data centre segment. Rival Schneider Electric also jumped 7.7 per cent. European chipmakers recouped some losses from the previous session with TSMC, the world's main producer of advanced AI chips, posting a record profit in the second quarter, boosting sentiment. ASML rose 3.9 per cent, following an 11 per cent drop on Wednesday. Ocado climbed 18.5 per cent after the online supermarket reported a 77 per cent rise in first-half underlying earnings and said its priority is to generate cash in its next financial year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The latest forecasts had shown that the outlook for European corporate health has deteriorated, with expectations of a drop of 0.7 per cent year on year in second-quarter earnings, according to LSEG I/B/E/S data. Waiting on trade clarity Investors continued to await clarity on US-EU trade talks with the bloc preparing retaliatory measures in case negotiations with Washington failed. 'Markets are still pretty optimistic that this may be the case and that things will progress in the next two weeks,' said Daniela Hathorn, senior market analyst at 'We have seen in the past, and even in Trump's first term, the amount of times that he actually threatened action and what he delivered was very limited.' European equities fell sharply on Wednesday after Bloomberg reported that Trump is likely to fire Federal Reserve chair Jerome Powell, but Trump later said he is not planning to do so. Meanwhile, Britain and Germany signed a wide-ranging friendship treaty that deepened ties in areas including defence and transport as UK attempts to reset ties with the EU. Among other moving stocks, Tomra Systems dropped 13.3 per cent, the worst day since October 2023, after the Norwegian group posted a second-quarter net sales miss. Swedish carmaker Volvo Cars advanced 7.9 per cent after reporting a sharp decline in second-quarter operating profit that still exceeded analyst expectations. Also on Thursday, US June retail sales data showed retail sales rebounding more than expected in June. REUTERS
