Industrial firm ABB continues to be impacted by losses in its Power Systems division, which includes its renewable energy EPC business and PV inverter business.
ABB reported group revenue for the second quarter of 2014 of US$10.2 billion, while its Power Systems division reported US$1.81 billion in revenue, up from US$1.6 billion in the prior quarter.
However, ABB group operational EBITDA was impacted by losses in the Power Systems division that are related to ongoing charges from its PV power plant and offshore wind EPC contracts. Power Systems reported a loss of US$24 million in the quarter.
According to ABB, the Power Systems division had continued to evaluate and reduce EPC project risks after announcing plans to exit PV EPC work and concentrate on offshore wind projects in the future.
Management noted that its Power Systems division was expected to impact earnings for several more quarters.
Order intake for the Power Systems division increased 39% year on year to US$1.76 billion. However, the company noted it had secured a US$400 million HVDC (high-voltage direct current) link project in Canada in the quarter and did not provide insight into its PV inverter business.