World Stock Market: ABB earnings jump in latest quarter

ABB LTD. ADRs, New York symbol ABB, manufactures transformers, transmission switches and other equipment for distributing electricity. It also makes automation systems and robotics that increase the productivity of manufacturing plants. Switzerland-based ABB has clients in a variety of industries. The company is one of the world stock market investments we analyze in our Wall Street Stock Forecaster newsletter The company earned $655 million in the three months ended March 31, 2011, up 41.2% from $464 million a year earlier. Earnings per ADR gained 45.0%, to $0.29 from $0.20, on fewer ADRs outstanding. (Each American Depositary Receipt represents one ABB common share.) Revenue rose 21.2% to $8.4 billion from $6.9 billion. Rising industrial development and higher commodity prices are prompting the company’s clients to increase their capacity and make their plants more efficient. These factors are pushing up demand for ABB’s products. Orders for new equipment rose 25% during the quarter. The company’s order backlog is now a record $29.3 billion. As of March 31, 2011, the company held cash of $4.5 billion, down from $8.6 billion at the end of 2010. The decrease mainly reflects the acquisition of Baldor Electric for $4.2 billion at the end of January. Based in Fort Smith, Arkansas, Baldor makes electric motors and related products for a wide variety of industrial uses, such as conveyor belts, air fans and blowers, and fluid pumps. You can get our in-depth analysis, including our updated buy/sell/hold advice, on ABB and other world stock market investments when you subscribe to Wall Street Stock Forecaster. What’s more, you can get one month free when you subscribe today. Click here to learn how.

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Scott Clayton

Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.

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