ABB Wins Orders - Analyst Blog

ABB Ltd (ABB) has won a $140 million order to build four electricity substations in Qatar and upgrade four others to help meet growing electricity demand.

ABB will design, manufacture and commission the new substations as part of a contract centered on the fast-growing greater Doha area.

Further, Swedish and Lithuanian power grid operators signed a €270 million contract with ABB, which will provide and install a 300 kilowatt HVDC cable for the NordBalt power interconnection.

ABB Ltd's power and automation technologies offer a solution for sustainable development, thus helping to shield the world's resources. The company has a number of technologies for the solar power industry and also a growing installed base. ABB Ltd. has witnessed improving signs in late-cycle power, with some recent large contracts.

However, ABB Ltd's results are likely to be adversely affected by macroeconomic weakness as more than 80% of the company's orders are derived from outside the US.  A major competitor of ABB Ltd. isSiemens AG (SI).

Based in Zurich, Switzerland, ABB Ltd. is a power and automation technology company. The company operates in five segments: Power Products and Power Systems supply products and complete Transmission and Distribution (T&D) solutions to utility and industrial customers.

Discrete Automation & Motion, Low-Voltage Products and Process Automation supply products, systems and solutions to customers across nearly all segments of the process and manufacturing industries, as well as specialist end markets, such as marine and utility. ABB Ltd. operates in approximately 100 countries and is globally structured into five regions, Europe, Americas, Asia, the Middle East and Africa.

We have a Zacks #3 Rank (short-term Hold recommendation) on ABB Ltd.