ABB Reports Rise in 3Q Earnings Helped by Pricing, Backlog Conversion

By Pierre Bertrand

ABB reported a jump in third-quarter profit and revenue helped by pricing and the conversion of the Switzerland-based technology company's order backlog.

The company said on Wednesday that it made $882 million in quarterly net profit, compared with $360 million a year prior after having booked a nonoperational provision related to its legacy Kusile power-station project in South Africa.

Revenue in the quarter grew 8% on a reported basis to $7.97 billion, ABB said.

It compares with analysts' expectations of $919 million in profit and $8.1 billion in revenue, according to a company-provided consensus.

Orders in the quarter fell 2% on year on a reported basis to $8.05 billion.

ABB said that it expects to achieve low to mid single-digit comparable revenue growth and an operational earnings before interest, taxes and amortization margin of around 16% in 4Q.

ABB also clarified its yearly guidance, saying it anticipated comparable revenue growth in the low teens, compared to at least 10% previously. It also said it expected its operational Ebita margin to be in the range of 16.5% to 17% compared with above 16% previously.

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

(END) Dow Jones Newswires

October 18, 2023 01:31 ET (05:31 GMT)

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