ABB 1Q Profit Grew But Cash Flow Fell by More Than Expected
21 April 2022 - 7:50AM
Dow Jones News
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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