ZURICH, Oct 17 (Reuters) - Swiss engineering group ABB on Thursday reported better-than-expected operating profit for its third quarter after strength in its electrification unit, helping it to slightly raise its profitability outlook for the year.
The maker of factory robots and fast electric chargers for cars and buses increased its operational core profit to $1.55 billion, slightly ahead of forecasts for $1.52 billion in a company gathered consensus.
The results of ABB, whose products are used to automate and electrify factories and buildings, as well as transport networks, are important because they give an insight into the health of the broader economy.
During the third quarter the company's electrification business offset weaknesses in its robotics and electric charging business, ABB said.
Group revenues increased 2% to $8.15 billion, missing the $8.34 billion forecast.
For the full year ABB said it expected comparable revenue growth to be "below 5%", a slight downgrade from its previous comments in July for full year sales to increase "around 5%."
But it raised its profitability expectations, saying it expected its operational EBITA (earnings before interest, taxes and amortisation) margin to be "slightly above 18%", a small upgrade from the "about 18%" range the company said previously.
The results were the first under new Chief Executive Morten Wierod, who took charge in August from Bjorn Rosengen. He stepped down after leading an overhaul at ABB, decentralising its operations and cutting costs.
Reporting by John Revill Editing by Tommy Reggiori Wilkes
Source: Reuters