By Pierre Bertrand

ABB Ltd. said Thursday that it expects to achieve its operating earnings before interest taxes and amortization margin target of at least 15% for 2023 a year early after third-quarter revenue grew amid an easing of component supply constraints.

Net profit for the period fell to $360 million from $652 million in the prior-year period, missing analysts' expectations, while revenue rose 5% to $7.41 billion. The company's income from operations was hit by an approximately $325 million non-operational provision related to its legacy Kusile power-station project in South Africa.

Analysts expected net profit of $444 million and revenue of $7.38 billion, according to a consensus provided by the company.

Orders climbed 4% to $8.19 billion, the Swiss industrial company said.

ABB's closely-watched operational Ebita rose 16% to $1.23 billion from $1.06 billion the previous year. It achieved an operating Ebita margin of 16.6% for the quarter, driven by its pricing which offset raw material, freight and labor cost inflation, the company said.

"We have not seen any material changes in the underlying customer activity," said Chief Executive Bjorn Rosengren. "It looks like we are likely to achieve our 2023 margin target one year early."

Revenue for the quarter was supported by an easing of supply constraints which facilitated customer deliveries and a by fewer interruptions from coronavirus-related lockdowns in China.

The company said it expects low double-digit comparable growth in revenue and the typical pattern of sequentially lower operational Ebita margin in the fourth quarter.

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

(END) Dow Jones Newswires

October 20, 2022 02:00 ET (06:00 GMT)

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