Swiss power technology firm ABB expects to take a £150million hit to its fourth quarter earnings after last year’s North Sea storms hit its windfarm projects.
The company warned that it expected to miss its profits targets ahead of next month’s full year results following the adverse weather conditions.
Last month’s storms, which saw 115mph winds hit the region, delayed installation work on projects in the North Sea, ABB chief executive Ulrich Spiesshofer warned.
“While the performance of four divisions was in line with our expectations during the fourth quarter, the issues we face in Power Systems are disappointing,” he said.
“This means we will not be able to deliver our profitability target for the division in the quarter. A focused action program is addressing these issues and implementation has been started swiftly.”
The company appointed the former head of its North Asian operations, Claudio Facchin, to oversee the power systems division at the beginning of December.
“The division’s new leadership is assessing the progress and targets of the realignment and we expect to provide an update when we announce the fourth-quarter and full-year results,” Spiesshofer added.
Restructuring charges and a slow order intake for the power systems division also hit the company’s profits, although ABB said it expected cash flow to be in line with the previous year.
Meanwhile the company has won the Zayed Future Energy Prize for its work in promoting renewable energy.
The award, presented by Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, at a ceremony in the UAE capital.
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