Categories: Market

Industry: ABB saw a big jump in profit in the second quarter

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As ABB announced on Thursday, sales from April to June increased 13 percent to $8.16 billion. Adjusted for currency and portfolio effects, sales increased 17 percent, supported by high order workload processing.

“Fortunately, customer activity remained strong throughout the quarter,” CEO Björn Rosengren said in a statement. And new orders keep coming, increasing the backlog.

Order intake, which is the basis for future sales, increased 2% on a similar basis in the second quarter to $8.67 billion. According to ABB, the so-called “book-to-invoice ratio” was 1.06.

This means that for every CHF 1.00 spent, new orders are received worth CHF 1.06 from the manufacturer of industrial robots, e-car charging stations or automation solutions. At the end of June, orders of $7.30 billion (+18%) had accumulated at ABB.

Profitability also increased with the high utilization of facilities. At the EBITA level, operating profit was up 25 percent to $1.43 billion and the corresponding margin was up 2 full percentage points to 17.5 percent.

Cost inflation does not seem to be a problem: According to CEO Rosengren, price increases more than offset these effects. And May’s IT security incident – ABB fell victim to hackers – had no “material financial consequences”.

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Net profit increased from 379 million last year to 906 million. At that time, withdrawing from an old project and withdrawing from Russia resulted in high private costs.

CEO Rosengren said in a statement that the latest results will allow ABB to “know” its margin expectations for this year. Despite the uncertainty in the market, the group expects the EBITA margin to be above 16 percent.

So far, ABB has promised a margin above the 2022 level (15.3%). Comparable sales are also expected to grow by at least 10 percent this year.

For the third quarter of 2023, ABB forecasts low double-digit growth. The margin will be slightly above the 16.6 percent reported the previous year.

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(SDA)

Source :Blick

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