By Joshua Kirby

ABB Ltd. said Thursday that it swung to a net profit in the final quarter of 2021 as revenue and profitability increased.

The Swiss engineering-and-technology company made a quarterly net profit of $2.64 billion compared with a net loss of $79 million the previous year, largely as a result of a $2.2 billion book gain from the sale of Dodge, its mechanical power transmission division, that closed Nov. 1.

Quarterly operational earnings before interest, taxes and amortization rose 22% comparably to $988 million, with a margin that increased to 13.1% on revenue that climbed 8% to $7.57 billion.

Analysts had expected revenue of $7.39 billion and net income of $2.42 billion, according to a company-compiled consensus. Operational Ebita was forecast at $983 million.

For 2021, ABB said it is raising its dividend proposal to 0.82 Swiss francs (89 cents) a share from CHF0.80 the previous year. Looking ahead, the company said revenue in the first quarter of the 2022 might fall sequentially, but the operating margin should stay stable or rise slightly.

For 2022, the company expects good market momentum and a strong order backlog to help the company keep moving toward a 2023 margin target of at least 15%.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

February 03, 2022 01:27 ET (06:27 GMT)

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