ABB cautious on outlook after Q4 profit miss

ZURICH: Swiss engineering company ABB expects economic uncertainty to suppress margins in the first-quarter of 2012, but was more upbeat for the rest of the year, after its fourth-quarter net profit missed forecasts.

"An unfavourable business mix and ongoing price pressure out of the order backlog will likely weigh on profit margins in the first quarter, but we are more optimistic about the rest of the year," Chief Executive Joe Hogan said in a statement.

Net income in the fourth quarter rose 19 percent to $830 million, but that was still short of the $935 million forecast by analysts in a Reuters poll.

Fourth-quarter orders rose 16 percent to $10.160 billion, compared to a Reuters' forecast for $9.86 billion.