ABB Q1 Results Climb; Sees Margin, Revenue Growth In Q2; Lifts FY23 View; Plans To Delist ADRs

(RTTNews) - Swiss engineering company ABB Ltd.(ANN.L, ABB) reported Tuesday that its first-quarter net income attributable to the company climbed 72 percent to $1.04 billion from last year's $604 million.

Basic earnings per share were $0.56, up 78 percent from last year's $0.31.

Operational EBITA grew 28 percent from the prior year to $1.28 billion and the margin was up by 200 basis points to 16.3 percent.

Revenue grew 13 percent to $7.86 billion from $6.97 billion a year ago. Revenue climbed 22 percent on a comparable basis, with double-digit comparable increases in all business areas.

The company increased order intake by 1 percent from last year to $9.45 billion, and comparable growth was 9 percent, with a positive development in three out of four business areas.

Björn Rosengren, CEO, said, "ABB had a strong start to the year, with a positive development in most measures, including cash flow. This gives us the confidence to raise our 2023 guidance."

Looking ahead for the second quarter of 2023, the company anticipates double-digit comparable revenue growth to support an improvement in the Operational EBITA margin, year-on-year.

In full-year 2023, despite current market uncertainty, the company expects comparable revenue growth to be at least 10 percent and to improve Operational EBITA margin, year-on-year.

The company previously expected comparable revenue growth to be above 5 percent and to again achieve long-term target of operational EBITA margin of at least 15 percent.

Further, ABB said it plans to delist American Depositary Receipts or ADRs on or around May 23, and as from the time of delisting, the ABB ADRs will instead be converted to a sponsored Level I program. This still gives US investors the ability to invest in ABB through ADRs.

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