ABB Misses Expectations on Supply-Chain Woes, Exchange-Rate Impacts
21 Juli 2022 - 07:38AM
Dow Jones News
By Ed Frankl
ABB Ltd. said Thursday that second-quarter profit and revenue
missed expectations despite higher volumes and orders, as it
flagged strained supply chains and logistics issues in China as
well as exchange-rate impacts.
The Swiss industrial company reported net income of $379 million
in the three months to the end of June, down from $752 million in
the same period the year before.
Orders climbed 10% from 2Q 2021 to $8.81 billion, though revenue
dropped 3% to $7.25 billion, both on a reported basis.
This compared with expectations of $467 million for net profit
and $7.44 billion for revenue, according to analysts' consensus
provided by the company.
ABB's closely watched operational earnings before interest,
taxes, and amortization rose slightly to $1.14 billion from $1.11
billion the previous year.
"Negative impact from changes in exchange rates and portfolio
changes outweighed the positives of strong price execution and
increased volumes, with the latter somewhat held back by the
strained supply chain," ABB's Chief Executive Bjorn Rosengren
said.
The Zurich-based company said there was pressure on customer
deliveries in China, where lockdowns slowed down logistics more
than expected.
ABB said its exit from Russia triggered a charge of $57 million,
of which $23 million will hit cash flow in the third quarter.
The company added that in 3Q it expects double-digit comparable
revenue growth and the operational Ebita margin to sequentially
improve.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
July 21, 2022 01:23 ET (05:23 GMT)
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