Latest news with #MortenWierod
Yahoo
4 days 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
The Star
5 days ago
- Business
- The Star
ABB posts record orders on booming US and data centre demand
ZURICH (Reuters) -Swiss engineering group ABB reported on Thursday its highest-ever quarterly order intake, helped by surging demand from the United States and for products used in data centres being built to support artificial intelligence. Orders in the United States, the company's biggest market, jumped 37% in the second quarter, outpacing a 14% rise in the group's orders overall, ABB said. Chief Executive Morten Wierod said the increase was driven by one big order and customers investing in automation and electrification, and was not due to pre-ordering to avoid the fallout of higher tariffs imposed by the United States. "Demand for electricity is going up quickly," Wierod told reporters. "That is being used by data centres, but also a lot of other industries are increasing their electricity consumption." ABB makes around 80% of its products sold in the United States locally, which protects it against tariffs, Wierod said. "There is no point pre-buying because we will not be hit by tariffs," he added. For the three months to the end of June, ABB reported a 9% rise in core operating income to $1.71 billion, beating analyst forecasts of $1.65 billion. Net income of $1.15 billion was better than the $1.12 billion expected by analysts in a company-supplied consensus. Revenue rose 8% to $8.90 billion, ahead of forecasts for $8.72 billion. The company's stock was up 7% in mid-morning trading in Zurich. Only ABB's robotics business was affected by the current trade uncertainty as automotive customers held off on investments while they waited to find out the final level of import duties. But the company's data centre business continued to do well, posting an increase in orders in the range of 10-20% during the quarter, with strong demand expected to continue. U.S. companies announced a series of big-ticket AI and energy investment pledges earlier this week, part of a push by President Donald Trump to maintain the country's edge in the booming technology sector. Around half of ABB's data centre business is in the United States, with around 30-35% in Asia, Africa and the Middle East, and the rest in Europe. (Reporting by John Revill. Editing by Susan Fenton and Mark Potter)
CNA
5 days ago
- Business
- CNA
ABB posts record orders on booming US and data centre demand
ZURICH :Swiss engineering group ABB reported on Thursday its highest-ever quarterly order intake, helped by surging demand from the United States and for products used in data centres being built to support artificial intelligence. Orders in the United States, the company's biggest market, jumped 37 per cent in the second quarter, outpacing a 14 per cent rise in the group's orders overall, ABB said. Chief Executive Morten Wierod said the increase was driven by one big order and customers investing in automation and electrification, and was not due to pre-ordering to avoid the fallout of higher tariffs imposed by the United States. "Demand for electricity is going up quickly," Wierod told reporters. "That is being used by data centres, but also a lot of other industries are increasing their electricity consumption." ABB makes around 80 per cent of its products sold in the United States locally, which protects it against tariffs, Wierod said. "There is no point pre-buying because we will not be hit by tariffs," he added. For the three months to the end of June, ABB reported a 9 per cent rise in core operating income to $1.71 billion, beating analyst forecasts of $1.65 billion. Net income of $1.15 billion was better than the $1.12 billion expected by analysts in a company-supplied consensus. Revenue rose 8 per cent to $8.90 billion, ahead of forecasts for $8.72 billion. The company's stock was up 7 per cent in mid-morning trading in Zurich. Only ABB's robotics business was affected by the current trade uncertainty as automotive customers held off on investments while they waited to find out the final level of import duties. But the company's data centre business continued to do well, posting an increase in orders in the range of 10-20 per cent during the quarter, with strong demand expected to continue. U.S. companies announced a series of big-ticket AI and energy investment pledges earlier this week, part of a push by President Donald Trump to maintain the country's edge in the booming technology sector.
CNA
5 days ago
- Business
- CNA
ABB draws record orders on booming demand from AI data centres and US
ZURICH :Swiss engineering group ABB reported on Thursday its highest-ever quarterly order intake, helped by surging demand from the United States and for products used in data centres being built to support artificial intelligence. Orders in the United States, the company's biggest market, jumped 37 per cent in the second quarter, outpacing a 14 per cent rise in the group's orders overall, ABB said. Its shares were indicated 3.1 per cent higher in premarket activity on the Zurich stock exchange as ABB also said it expected further revenue growth in the third quarter. ABB said its orders for products for data centres increased in the double-digit percentage range during the quarter. They are being built to provide data storage and computational resources used for artificial intelligence, the company said. U.S. companies announced a series of big-ticket AI and energy investment pledges earlier this week, part of a push by President Donald Trump to maintain the country's edge in the booming technology sector. The demand put ABB in a good position for the rest of the year, said CEO Morten Wierod, despite ongoing uncertainties linked to rising tariffs. "ABB delivered an all-time-high order intake and improved operational performance," he said in a statement, adding that the current market environment was "robust." "We are on a good path towards a new record year," he added, pointing towards higher sales and profitability at the company, despite geopolitical uncertainties. For the three months to the end of June, ABB reported a 9 per cent rise in core operating income to $1.71 billion, beating analyst forecasts of $1.65 billion. Net income of $1.15 billion was better than the $1.12 billion expected by analysts in a company-supplied consensus. Revenue rose 8 per cent to $8.90 billion, ahead of forecasts for $8.72 billion.
Yahoo
13-05-2025
- Business
- Yahoo
ABB Weighs Sale of Robotics Arm as Alternative to Spinoff
(Bloomberg) -- ABB Ltd. is exploring a potential sale of the robotics unit, which could be worth more than $3.5 billion, as an alternative to the main spinoff plan, according to people familiar with the matter. A New Central Park Amenity, Tailored to Its East Harlem Neighbors As Trump Reshapes Housing Policy, Renters Face Rollback of Rights What's Behind the Rise in Serious Injuries on New York City's Streets? NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies LA Mayor Credits Trump on Fire Aid, Stays Wary on Immigration The Swiss industrial giant is close to appointing advisers for a sale as well as the listing, which it announced last month, the people said, asking not to be identified because the talks are private. The business could be worth about $3.5 billion, in line with analyst estimates, or as much as $5 billion, some of the people said. If ABB pursues a sale instead of the preferred option of a spinoff, the unit could attract interest from private equity firms, the people said. 'Should ABB be approached, it is the duty of the executive committee and board to thoroughly evaluate all proposals,' the company said in an emailed statement in response to Bloomberg News query. However, 'we believe that a spinoff is the best option to optimize the respective companies' abilities to create customer value.' NOTE: ABB to Spin Off Robotics Unit for 2026 Stock-Market Listing (4) ABB in April said it plans to spin off and list the robotics unit in the second quarter of 2026. It was one of the first major strategic moves by the firm's new Chief Executive Officer Morten Wierod who took the helm at the company in August last year. Wierod ran ABB's flagship electrification business prior to his CEO appointment. The Norwegian executive wants ABB to focus on more profitable units, such as electrification, which is benefiting from soaring investments in data centers that are in demand because of the rise of artificial intelligence. The robotics unit, run by Marc Segura, accounts for around two thirds of ABB's robotics and discrete automation division. It employs 7,000 people and runs manufacturing hubs in China, the US and Sweden. The latter is the birthplace of ABB's robotics business. ABB also said robotics alone has limited synergies with its other divisions and would benefit from being measured more directly against its peers. The spinoff, if successful, will see ABB shareholders receive stock in the future listed company. The plan is to list the business in Sweden or Switzerland, though the Swiss manufacturer has not excluded other venues. In 2024, the robotics and discrete automation unit generated an operational Ebita, or earnings before interest, taxation and amortization of $329 million, a 39% decline compared to the previous-year period. The unit especially suffered from weakness in the automotive and consumer electronics sector. Still, the robotics division posted double-digit margins standalone. (Updates with details from 7th paragraph) The Recession Chatter Is Getting Louder. Watch These Metrics US Border Towns Are Being Ravaged by Canada's Furious Boycott Two Million Meat Sticks a Day Isn't Enough for Chomps' CEO With the New York Liberty, Clara Wu Tsai Aims for the First $1 Billion Women's Sports Franchise How the Lizard King Built a Reptile Empire Selling $50,000 Geckos ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
