Categories: Market

ABB boosts sales with falling profits

Inbound orders were US$8.19 billion, up 4 percent from the same quarter last year, the maker of industrial robots, charging stations or automation solutions for electric cars said on Thursday. However, on a comparable basis, adjusted for portfolio and currency effects, the increase was 16 percent.

Order intake slowed a bit as organic growth was still 20 percent in the second quarter.

However, there was a slight acceleration in sales. This rose 5 percent to $7.41 billion, or +18 percent on a comparable basis. There was still a 3 percent drop in the second quarter (pg. +6%). ABB writes that no significant change has been observed in the activities of our customers.

Operating income (EBITDA) increased 16% year on year to $1,231 million and the corresponding margin increased 1.5pp to 16.6%.

Net profit fell a significant 45 percent to US$360 million. However, a one-time effect plays a role here. As announced in late September, approximately $325 million was earmarked for a lawsuit in South Africa in the third quarter.

ABB slightly exceeded analysts’ expectations.

For the fourth quarter, ABB forecasts low double-digit comparable revenue growth. EBITDA margin is likely to decrease compared to the previous year due to seasonal developments.

For 2022 as a whole, the company expects the operating margin target of at least 15 percent planned for 2023 alone to be met already.

(SDA)

Source :Blick

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