News
ABB · Earnings · Guidance · Industrial Automation
ABB Ltd., the Swiss engineering company, reported a significant 139% surge in second-quarter net income to $906 million, driven by strong revenue growth and robust customer activity, leading to a positive outlook for the third quarter and an upward revision of its full-year operational EBITA margin forecast.
For the second quarter, operational EBITA grew 25% to $1.43 billion, with the margin expanding 2 percentage points to 17.5%. Revenues climbed 13% to $8.16 billion, or 17% on a comparable basis, reflecting increased volumes and a mid-single digit price contribution.
Orders, however, declined 2% to $8.67 billion, though comparable orders rose 2%. CEO Bjorn Rosengren cited the positive book-to-bill ratio and record operational EBITA as reasons for confidence.
For Q3, ABB expects low double-digit comparable revenue growth and a slightly improved operational EBITA margin compared to 16.6% last year. The company maintained its fiscal 2023 comparable revenue growth forecast of at least 10% but sharpened its annual operational EBITA margin projection to above 16%.
The divestment of the Power Conversion division is anticipated to yield a nonoperational book gain of approximately $50 million in Q3. ABB shares gained around 3% in Switzerland following the announcement.
