ABB 2Q profit battered by charges to unload solar business

The figure was hit by ABB taking a $455 million charge to offload its loss-making solar inverter business to Italy's FIMER SpAReuters  |  July 25, 2019, 15:53 IST
An array of solar panels is seen in the desert near Victorville, California, U.S. March 28, 2018. REUTERS/Lucy Nicholson/File Photo
An array of solar panels is seen in the desert near Victorville, California, U.S. March 28, 2018. REUTERS/Lucy Nicholson/File Photo
ZURICH: ABB reported a drastic reduction in net profit during its second quarter as the Swiss engineering company took a charge for ditching its solar inverters business earlier this month.

In its first set of earnings under its new structure and with interim Chief Executive Peter Voser at the helm, ABB reported net profit plunging 91% to $64 million, from $681 million a year earlier. Analysts in a company-gathered consensus had expected net profit of $2 million.

The figure was hit by ABB taking a $455 million charge to offload its loss-making solar inverter business to Italy's FIMER SpA.

During the quarter ABB's sales rose 7% to $7.17 billion, short of forecasts for $7.19 billion.