By Pierre Bertrand

 

Accelleron Industries AG's owner, ABB Ltd., on Wednesday laid out the business's full-year 2022 and midterm financial targets ahead of a planned spinoff deal that could see it listed in Switzerland in early October.

ABB said Accelleron, which produces and services turbochargers and its components for engines, expects operational net income roughly at $150 million and to achieve an operational earnings before interest, taxes and amortization margin of around 24%.

ABB said that Accelleron expects revenue to grow organically by approximately 6% in 2022 and, barring any unforeseen events, that it intends to pay its first dividend of around $75 million in the first half of next year.

In 2021, Accelleron generated revenue of $756 million with an operating margin of 25%.

ABB, a Swiss-based technology company, said Accelleron intends to grow faster than its competitors and will focus on increasing its market share in its core marine and energy markets.

"Targeted bolt-on acquisitions are planned to be complementary to Accelleron's existing portfolio and will be subject to a disciplined strategic fit and value creation," ABB said.

Looking ahead, ABB said Accelleron foresees a midterm organic revenue compound annual growth rate of between 2% and 4%, with an operational Ebita margin of between 23% and 26%.

ABB in July said that it intends to spin off Accelleron and list the company on the SIX Swiss Exchange on Oct. 3.

The deal is subject to approval by ABB shareholders who are scheduled to meet on Sept. 7.

 

Write to Pierre Bertrand at pierre.bertrand@wsj.com

 

(END) Dow Jones Newswires

August 31, 2022 02:26 ET (06:26 GMT)

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