Swiss engineering firm ABB Ltd. said that streamlining affected its full-year 2017 earnings but proposed a ninth consecutive dividend increase on optimism for improved global demand.
Fourth-quarter net income came in at $393 million from $425 million in the year-ago quarter. Basic EPS stood at 18 cents from 20 cents in the previous year. Operational EPS declined by 2% year over year to 33 cents.
The company reported revenues of $9.28 billion in the fourth quarter 2017, up from $8.99 billion in the prior year. The revenue decline in the Power Grids segment offset the solid growth posted by the Robotics and Motion division. Total orders went down 3% year over year to $8.48 billion. Operational EBITA declined by 3% to $1.02 billion.
For full year 2017, ABB reported a net income of $2.21 billion, up from $1.90 billion in 2016. Revenue was up 1% year over year to $34.31 billion, while orders were flat at $33.39 billion.
ABB completed its acquisitions of Bernecker + Rainer Industrie Elektronik GmbH and the communication networks business of KEYMILE Group in 2017. The company also entered into an agreement to acquire GE Industrial Solutions. And it continued to de-risk its portfolio by divesting noncore businesses and implementing its Engineering, Procurement and Construction business model change, a decision that affected full-year results.
The company's board also proposed the ninth consecutive increase in the ordinary dividend to CHF 0.78 per share for 2017, an increase of CHF 0.02 compared with the dividend distribution for the prior year. Shareholders will need to approve the proposal at the company's annual general meeting set for March 29.
