ABB, the Swiss industrial company, has reported impressive second-quarter results that have surpassed analyst expectations. Let’s take a closer look at the key details:
In the second quarter, ABB generated $8.16 billion in revenue, marking a significant 13% increase compared to the previous year. This achievement narrowly exceeded the forecasted revenue of $8.13 billion, according to the consensus provided by the company.
Doubling Net Income
Net profit for ABB more than doubled during the quarter, surpassing analyst views. The company reported a net profit of $906 million, a considerable rise from $379 million in the second quarter of 2022. Analysts had predicted a net profit of $873 million, as per ABB’s provided consensus.
Here are some notable observations from ABB’s performance:
While the overall second-quarter order intake at a group level declined by 2% to $8.67 billion, ABB attributed this decrease to changes in exchange rates and its portfolio restructuring. The decline also reflected a softening compared to the high order levels seen last year in its short-cycle business. The company experienced significant growth in orders from the Americas but observed a decline in Asia, the Middle East, and Africa. Notably, orders in China fell by 15%. Among the divisions, electrification and motion orders saw growth of 1% and 3%, respectively. However, process automation orders fell by 8%, and robotics orders plummeted by 23%. Despite these fluctuations, ABB’s order backlog expanded to $21.9 billion.
ABB attributed its revenue growth in the quarter to effectively executing on its order backlog. The company achieved record-high operational earnings before interest, taxes, and amortization (EBITA) of $1.42 billion. Moreover, its operational EBITA margin saw a 2-point increase to reach 17.5%. ABB mentioned that the positive price development across all business areas played a vital role in driving these impressive results. The company successfully offset labor inflation and limited cost inflation related to commodities.
These remarkable achievements underscore ABB’s strong performance in the second quarter. With its focus on executing orders and maintaining profitability, ABB continues to solidify its position as a leader in the industrial sector.