ABB Posts Higher Profit, Reaffirms Outlook
By Nina Kienle and Adria Calatayud
ABB reported a rise in second-quarter profit, helped by momentum in the electrification division that is benefiting from strong demand from data centers and infrastructure.
The Swiss industrial-technology company on Thursday said second-quarter net profit rose to $1.10 billion from $906 million in the prior year, on revenue that grew 4% on a comparable basis to $8.24 billion.
Orders for the quarter were $8.435 billion, flat on a comparable basis, the company said.
Operational earnings before interest, taxes, and amortization rose 12% on a comparable basis to $1.56 billion, with an expanded margin of 19% compared with 17.5% a year before, the company said. Profit growth was supported by growth in the group's electrification and process automation divisions, which offset declines in its motion and robotics segments.
Analysts expected ABB to report revenue of $8.375 billion, operational Ebita of $1.54 billion and net profit of $1.03 billion, according to consensus estimates provided by the company.
For the third quarter, it anticipates a sequentially higher growth rate in comparable revenue, with an operational Ebita margin of about 18.5% or slightly below.
For 2024, ABB continues to expect comparable revenue growth of about 5% and an operational Ebita margin around 18%.
Write to Nina Kienle at nina.kienle@wsj.com and to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
July 18, 2024 01:20 ET (05:20 GMT)
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