By Ed Frankl 
 

ABB Ltd. on Thursday posted first-quarter profit and revenue that grew on year, but said cash flow fell more than expected despite higher pricing offsetting higher inflationary costs.

The Swiss industrial company reported net income of $604 million in the three months to the end of March, up from $502 million in the same period the year before.

Orders climbed 28% from 2021 to $9.37 billion, while revenue rose 7% to $6.97 billion, both on a comparable basis.

The numbers compared with expectations of $562 million for net profit and $7.08 billion for revenue, according to analysts' consensus provided by the company.

The company's closely watched operational earnings before interest, taxes, and amortization rose to $997 million from $959 million the previous year.

However, a drop in cash flow to negative $573 million was sharper than anticipated due to a higher-than-expected build-up of net working capital to support deliveries from the order backlog, the company said.

"Cash delivery will clearly be in focus going forward and I expect a solid full-year cash flow," Chief Executive Bjorn Rosengren said.

However, higher volumes and stronger pricing offset hits from cost inflation related to raw materials, certain components, logistics and tight labor markets, ABB said.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

April 21, 2022 01:35 ET (05:35 GMT)

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