ZURICH - ENGINEERING giant ABB said on Thursday that its net profit slipped 17 per cent in 2008 to US$3.118 billion (S$4.8 billion), with the fourth quarter particularly difficult.

Net profit for the quarter was just one-eighth of that in the previous year at US$213 million.

Orders dipped 19 per cent in the fourth quarter to US$7.2 billion.

This was mainly the result of lower orders for large new power infrastructure projects, especially in emerging markets, and reduced investments in new industrial capacity, the company said.

However orders to upgrade power grids and replace equipment continued to grow, as did demand for energy efficient technologies.

Overall revenues continued to rise, by five percent to 9.1 billion dollars, as the company continued to fulfill its order backlog, and ABB said it had no significant order cancellations.

'Our solid revenue growth and cash flow in the quarter show the underlying operational strength of the company,' said Joe Hogan, ABB's Chief Executive Officer, in a statement.

'The outlook for 2009 remains uncertain,' Hogan said. 'We are taking steps now to ensure that we remain competitive, no matter how the market develops.' -- AFP