ABB net climbs 34%, lifts growth outlook

ZURICH (MarketWatch) -- ABB Ltd. Thursday reported a 34% increase in second-quarter net profit on buoyant demand for power transmission and automation equipment, and gave a more upbeat growth outlook. Bank Vontobel said the figures were strong. "Investors have been concerned about any signs of a slowdown, particularly in the U.S., and about margin pressure, but none of that has materialized," analyst Panagiotis Spiliopoulos said. He has a buy rating and a CHF35 price target. ABB reaffirmed a previous full-year growth outlook of 15% to 20% for its power-related activities, but upgraded the growth guidance for its automation business to "clearly above" 10%. Two weeks ago, ABB named Joseph Hogan, the head of General Electric Co.'s medical technology division, as its next chief executive. The appointment is expected to result in... [read full story]