ABB 1Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“I think all the mess in the United States, on the sequester and everything else, it just creates a level of anxiety and concern there, but I think it helps to mute a construction cycle that started to gain some momentum in the second half of last year that we were hoping for.”

“Let me start mark, on the mining side, just to stay there. I don’t claim to say that I can see the future in this sense, but we’ve been pleased with the level of CapEx that we’ve seen in these kinds of things like mine hoist and gearless mill drives. And remember, they’re around ore bodies. So you see them around — you’ll see it specifically around copper, around nickel, things that really — that have been precious, and even though the costs or the prices come down from a commodity standpoint, there still is historical reasonable highs from a return standpoint. So what the mining companies tell us that the ore bodies are not as rich in specific minerals. It’s what they’ve in the past, so they have to pound them harder to get them out, and that’s what a gearless mill drive does, just take a bunch of rocks and crack them up and take it down to the ore body and then you just drill it. Mine hoist just means you’re going lower or you’re bending your mine. So it just says that they’re working the mines harder. And I think we’ve seen the whole issue with the write-offs of what went on in the mining industry last year, the changing of a lot of the CEOs and leadership there, and I think the leadership teams that are put in place around the mine companies today. And I’m not talking, Mark, at all about coal. Okay, coal has its own set of cycle. I’m talking about ore, okay? I think that leadership that’s in place is really dedicated in to sweating assets more, not dong greenfield, being more responsible from an operational standpoint and so am I optimistic we can keep this going? I’m not telling you I am or not. I’m just reporting on our performance so far and the reason for it and some of the underlying drivers for it, and we’ve certainly hoped that it does.”

“Remember, these dollar-to-yen ratios are not historically. I mean, it’s — obviously, the yen has been much higher in that sense, but we, from an overall historical standpoint, we see kind of yen levels before, so I think it’s just taking some of the pressure of the Japanese exports, but I don’t think it’s a phase change at all.”