Boston, MA 05/22/2014 (wallstreetpr) – The story is about to change for the $54 billion electrical engineering company ABB Ltd (ADR) (NYSE:ABB). After suffering a series of revenue decline because of lack of enough business opportunities, ABB is starting to see customers seeking its services.
The company announced two contracts with a total value of $20 million that involve providing almost a complete package of electrical power and propulsion system solutions in two offshore vessels. The vessels will be delivered between 2015 and 2017, with the first one being delivered around the 3Q2015.
Clients in the latest contracts
ABB Ltd (ADR) (NYSE:ABB) revealed that the vessel to be delivered in 3Q2015 with the capacity to handle more than 200 people and about 500 tons of weight belongs to a joint venture of Edison Chouset Offshore and Island Offshore. The joint venture is known as Ventures 11. The second vessel in the contract will be delivered in 2017 and belongs to Island Offshore.
In its part, ABB in a nutshell will ensure that the offshore vessels function optimally with the highest levels of efficiency and safety. The company will employ its remote diagnostic system (RDS) in tracking the ships to ensure timely repairs and reduction in on-site visits. In other words, ABB will ensure that it also cuts costs on its side in meeting the requirements of the contracts.
More than just one
The latest contract comes hot on the heels of another contract that ABB Ltd (ADR) (NYSE:ABB) signed on May 14 with Finnish Transport Agency (FTA). The contract involves providing power solutions for the Archtech Helsinki Shipyard.
Improving performance
The quick manner in which ABB Ltd (ADR) (NYSE:ABB) is winning business contracts of late is encouraging because it signals potential performance improvement in the company. However, the recent past quarters have been nothing but excruciatingly painful for ABB and its shareholders.
The company reported 1Q2014 financial results on April 29, during which it posted EPS of $0.24, missing the consensus estimate of $0.34. Revenue in the quarter also missed expectation, coming at $9.47 billion against the estimate of $9.77 billion. Both revenue and EPS were down from last year.
