ABB 4Q Net Profit Fell, Orders Declined -- Update
02 Februar 2023 - 08:37AM
Dow Jones News
By Pierre Bertrand
ABB Ltd said Thursday that its net profit declined in the final
quarter of 2022 as orders fell and customers began normalizing
The Swiss technology group said it made $1.13 billion in net
profit for the fourth quarter compared with $2.64 billion for the
prior-year period, which reflected the gains from the sale of its
mechanical power transmission division.
The company's revenue increased 3% to $7.82 billion, ABB
Analysts had expected $718 million in net profit and $7.63
billion in revenue that analysts had expected, according to a
company-compiled consensus of the fourth quarter.
ABB said its quarterly cashflow was weighed down by $315 million
due to earlier announced Kusile project settlements.
The company's orders declined 8% to $7.62 billion.
"Customer activity improved slightly or remained stable in most
customer segments, except for declines related to residential
construction and discrete manufacturing. The market outlook for
discrete manufacturing remains solid, although the fourth quarter
was adversely impacted by customers normalizing order patterns
following a period of pre-ordering triggered by the long delivery
lead times in a strained value chain," ABB said.
ABB said that after its e-mobility unit raised approximately
CHF525 million ($578 million) in pre-IPO private placements, it
remained committed to listing the unit.
ABB achieved $1.15 billion in closely-watched quarterly
operational earnings before interest, taxes and amortization, a 16%
increase over the prior year. It said that prices more than offset
the impact of inflation in commodities, freight and labor.
Its full-year operational Ebita margin came in at 15.3%. ABB had
targeted a full-year operational Ebita margin of at least 15% by
ABB said it was proposing an ordinary dividend of CHF0.84 a
share, up from CHF0.82 the previous year.
It said that for 2023 it doesn't anticipate a major setback in
demand, although the high inflationary environment adds
uncertainty. It said that order growth in the first half of the
year should start reflecting the normalization of customer
For 2023 ABB said it is anticipating comparable revenue growth
to be above 5% and to again achieve an operational Ebita margin of
at least 15%.
The company separately said that its board of directors has
nominated Denise Johnson, the group president of Caterpillar Inc.,
to join as a new member at the company's upcoming annual general
meeting on March 23, replacing Satish Pai who will step down.
Write to Pierre Bertrand at email@example.com
(END) Dow Jones Newswires
February 02, 2023 02:22 ET (07:22 GMT)
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