Ulrich Spiesshofer, head of Swiss engineering group ABB said the company will continue to work on its power systems division after the announcement of disappointing results.
Mr Spiesshofer said, “We are disappointed with the continued poor performance in Power Systems and are rigorously executing actions that go well beyond the previously-announced strategic realignment.”
ABB (SIX: ABBN) put the unexpected fall in first-quarter profit down to weak orders for the unit and charges related to wind and solar power projects.
It will now halt bids for new turnkey solar power generation projects, reassess its business model for offshore wind power connections and implement further management changes.
First-quarter net profit slid 18 percent to $544m, missing the average forecast of $726m in a Reuters poll of 17 analysts.
The world’s largest maker of power transformers has suffered as a result of sluggish growth for large orders as economic uncertainty prompts customers like utilities to delay big projects to upgrade grid infrastructure.
For more power generation business news
[bc_video account_id=”” player_id=”” video_id=””]