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ABB posts operating profit slightly ahead of forecasts

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Tariff impact limited to tens of millions of dollars

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US new orders up 27% in third quarter

(Adds CEO comments in paragraphs 5,7, share price paragraph 10)

By John Revill

ZURICH, Oct 16 (Reuters) - Swiss engineering company ABB

said it is seeing strong customer demand, particularly

from a surge in new data centres being built in the U.S. to

process artificial intelligence.

ABB, which makes factory robots, as well as motors and

drives for factory production lines, also said on Thursday it

was seeing little impact on customers from U.S. import tariffs

as it reported its third quarter results.

The results give an insight into the health of the broader

industrial economy, with ABB's products used to electrify and

control buildings, mines and factories.

New orders in the U.S. jumped 27% during the third quarter.

"It's not related to tariffs," said Chief Executive Morten

Wierod. "It's the normal standard business where there is strong

demand."

GROWING DEMAND FOR DATA CENTRES, UNINTERRUPTED POWER

ABB generates around 7% of group revenues from data centres,

up from 6% a year ago. It provides electrification products, for

example uninterruptable power supplies, to keep server rooms

online.

"The build-out of data centres, of course, is one key

driver, but it's also the electrification trends of industries

that also puts more pressure on the utility side, so they need

to invest, and even in power generation," Wierod told reporters.

Data centre-related orders increased by a double digit

percentage rate in the third quarter. Earlier this week ABB

announced a partnership with chip maker Nvidia ( NVDA ) to

develop the next generation of data centres.

ABB said its operating earnings before interest, tax and

amortisation (EBITA) rose 12% to $1.74 billion, slightly above

analysts forecasts.

Revenue rose 11% to $9.08 billion, beating forecasts for

$8.88 billion, while orders rose 12%. Its shares rose 2.5% in

early trading before paring gains later in the morning.

Chief Financial Officer Timo Ihamuotila, who is stepping

down next year, said the impact of U.S. import tariffs had been

limited to the tens of millions of dollars on operating profit,

which ABB was countering with small price increases and

efficiency gains.

The company currently produces locally around 75-80% of the

products it sells in the U.S. and is aiming to reach 90% by

investing more in U.S. factories.