Zurich, Switzerland (GenevaLunch) – ABB, Switzerland’s largest engineering group, says that positive developments will allow it to post a $1 billion profit when its official figures are announced 29 October. The more upbeat business environment has allowed the company to reduce its provisions against charges in the third quarter, boosting its profits. At the end of 2008, ABB announced that compliance, tax and restructuring costs would require it to reduce its forecast profits.

Specifically, ABB put aside $380 million for costs related to allegedly anti-competitive practices in a contract for power transmission in the European Union. A decision by the European Commission last September allowed ABB to release those funds.

ABB says that its business in Russia is particularly difficult and this is one area where it has built up reserves.

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