Robotics giant ABB 'pretty pessimistic' on China: 'It will be challenging for the rest of the year'
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The CEO of Swedish-Swiss multinational robotics firm ABB said he has been «disappointed» by the state of the Chinese market, adding he expects conditions will prove challenging for the rest of the year.
«China is not really developing as we hoped in the beginning of the year,» said Bjorn Rosengren, CEO and chairman of ABB, speaking with CNBC's Joumanna Bercetche on Wednesday, adding ABB has been impacted by a «softening» in China's property sector.
Rosengren said that a decline in Chinese real estate development and hefty debts faced by the sector have meant pain for its residential construction segment, which is more cyclical and therefore prone to changes in the economy.
«We are pretty pessimistic at the moment» on China, said Rosengren. «We thought in the beginning of the year that we should see some recovery from the Covid period, but I think everybody has been pretty disappointed.»
«China continues to be pretty soft. It's a big market though, so it's not dead. It's still living there, but not really developing as we'd hoped. I think it will be challenging for the rest of the year.»
ABB is one of the largest companies globally operating in the realm of industrial manufacturing. With its machines embedded in so many major global companies' factories, the company's performance serves as something of a barometer for the health of the manufacturing sector — and the broader economy.
Notably, China, a powerhouse of manufacturing often referred to as «the world's factory» due to the country's influence on global trade, is the company's second-biggest market.
ABB says it's the leading robotics player in the Chinese market, accounting for more than 90% of sales from locally-made products, solutions and
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