Power and automation technologies company ABB Ltd. (ABB) said Monday that it expects to report third quarter net income of about $1 billion, an increase both sequentially and year-over-year, helped by the positive impact from adjusting certain provisions.
For the third quarter last year, the company had reported net income of $927 million, or $0.40 per share, on revenues of $8.79 billion. For the sequentially preceding second quarter, ABB had net income of $675 million or $0.30 per share on revenues of $7.92 billion.
The Zurich, Switzerland-based company noted that its third-quarter results will be positively impacted by change of provisions and accruals, resulting in an overall reduction of about $380 million. It added that the third-quarter provisions would be impacted primarily by changes relating to alleged anti-competitive practices, including, but not limited to, the European Commission's power transformer decision.
Earlier in October, European Commission imposed a fine of EUR 33.75 million on ABB for violating its Treaty's ban on cartels and restrictive business practices, which was 50% higher than that incurred previously in a similar infringement.
Third-quarter accruals will include an increase in charges relating to the challenges of doing business in Russia, including the impact of ongoing tax matters. The group said that it is assessing its business model in Russia.
In December 2008, ABB had appropriated reserves for anticipated charges relating to certain compliance, tax and restructuring matters.
ABB expects to report its third-quarter earnings on October 29. On average, two analysts polled by Thomson Reuters expect earnings per share of $0.29. Analysts' estimates typically exclude special items.
Friday, ABB closed regular trading at $21.43, on the NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.