ABB Q2 Profit More Than Doubles, Sees Growth In Q3; Updates FY21 View

(RTTNews) - Swiss engineering company ABB Ltd.(ANN.L, ABB) Thursday reported that its second-quarter net income attributable to the company climbed 136 percent to $752 million from last year's $319 million. Basic earnings per share were $0.37, up from $0.15 last year.

Operational EBITA was $1.11 billion, up 71 percent from prior year's $651 million.

Revenues were $7.45 billion, 14 percent higher than prior year's $6.15 billion. Orders were $7.99 billion, up 32 percent from $6.05 billion a year ago.

Looking ahead, ABB anticipates growth rates in the third quarter to reflect the low level of business activity in last year's third quarter.

Based on the current market situation, comparable revenues are expected to grow around 10 percent, with orders growing more than revenues.

In the third quarter, higher demand and service revenues should be supportive to the Operational EBITA margin year-on-year, however some sequential adverse impact is expected from rising raw material costs, component shortages as well as increasing travel spend as pandemic-related restrictions ease.

ABB anticipates comparable revenue growth of just below 10 percent, compared to previous view of around 5 percent or more for full-year 2021.

In 2021, ABB expects a strong pace of improvement from 2020 toward the 2023 operational EBITA margin target of the upper half of the 13 percent-16 percent range. The company previously expected a steady pace of improvement.