ABB continued to grow in Q3

ABB continued to grow in Q3
ABB continued to grow in Q3

Referring to the rest of the year, ABB, despite a good performance in the 3rd quarter, is revising downward its revenue expectations, now counting on growth between 6 and 8%, against slightly less than 10% until then (archives). KEYSTONE / EPA / JENS SCHLUETER sda-ats

This content was published on October 21, 2021 – 08:11

October 21, 2021 – 8:11 AM

(Keystone-ATS)

ABB kept pace in Q3, despite supply challenges. With orders and to a lesser extent rising sales, the Zurich electrical engineering giant has significantly improved its profitability in the space of a year.

Indicator of the operational performance of the Zurich giant, the result before interest, taxes and depreciation (Ebita) soared 35% to 1.06 billion dollars, said Thursday ABB.

Reflecting exceptional effects in 2020, in particular a one-time gain linked to the sale to Hitachi of a large part of the Power Grids sector, net profit attributable solely to ABB shareholders however contracted sharply, as expected, ie by 86% to $ 652 million (593.8 million francs).

Orders, meanwhile, jumped 29% to $ 7.86 billion, while revenues grew much more modestly by 7% to $ 7.03 billion. ABB was unable to maintain the vigorous expansion posted in the second quarter due to the delay in deliveries due to supply difficulties.

Organic growth in orders, ie excluding constant currency effects and changes in the scope of consolidation, was 26%. For income, it was fixed at 4%.

Always carefully scrutinized by analysts, the Ebita margin rose to 15.1%, against 12% twelve months earlier. The development in this area has even exceeded the expectations of the group, its managing director, Björn Rosengren, having declared last July to aim for a value equivalent to that presented between April and the end of June.

Sales forecast revised downwards

Quoted in the press release, Mr. Rosengren praised a “good margin” in a difficult environment given the supply difficulties. He also welcomed the vigorous generation of liquidity, which fed into the group’s balance sheet with a view to supporting its organic growth and possible acquisitions, not to mention distributions to shareholders.

ABB’s performance was generally more or less in line with expectations, with Ebita meeting expectations, as orders exceeded and sales missed. Surveyed by AWP, experts had anticipated an average Ebita of 1.06 billion dollars, revenues of 7.26 billion and new orders of 7.54 billion.

Referring to the rest of the year, ABB is revising downward its expected turnover, now counting on growth between 6 and 8%, against slightly less than 10% until then. The Ebita operating margin should improve further.

 
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