Swiss engineering group ABB (ABBN.VX) is banking on stronger growth in North America to offset a weaker China and tough austerity measures in southern Europe, after first-quarter orders beat expectations.
"Geographically, we have a mixed economic type of performance," Chief Executive Joe Hogan said in a video statement.
"China a little bit weaker than what you'd want. Obviously Italy, Spain, southern parts of Europe being challenged in that way, but not industry specific."
Orders in the first quarter were flat year-on-year at $10.368 billion, beating the $10.127 billion average forecast in a Reuters poll.
While orders dropped 11 percent and 5 percent in Asia and Europe respectively, orders in the Americas jumped 25 percent in the first quarter.
ABB is hoping a global push to upgrade electrical grid infrastructure and use energy more efficiently will drive long-term demand for its products, which are used by oil, mining and utility companies.
ABB reiterated it expects sales in its early-cycle businesses, which make products ranging from industrial robots to software, to grow at low single-digit rates compared with 2011 levels until confidence in the economy improves.
In its later-cycle businesses, which produce power transformers for utilities, a strong order backlog should support revenue growth.
French rival Schneider (SCHN.PA) said last week organic sales would inch slightly higher at best in 2012, hit by a slowdown in Asia and tough austerity measures in Europe.
ABB's first-quarter net profit rose 5 percent to $685 million, compared with the $692 million poll forecast.
Hogan said the oil, gas, mining and minerals sectors were performing well and the company was seeing strong orders in the area of offshore wind.
This contrasts with German peer Siemens (SIEGn.DE) which slashed its full-year outlook on Wednesday after incurring a major charge related to delayed offshore wind power projects in the second quarter.
ABB said it hoped cost savings would continue to offset price pressures in parts of its power business.
Net cash at the end of the first quarter was $1.4 billion. Hogan has said the company is considering plugging gaps in its automation and transmission portfolio via acquisitions.