ABB Q3 Profit Surges, Orders Down; Sees Higher Margin In Q4 - Quick Facts

(RTTNews) - Swiss engineering company ABB Ltd.(ANN.L, ABB) reported Friday that its third-quarter net income attributable to the company surged to $4.53 billion from last year's $515 million. Earnings per share were $2.14, up from $0.24 last year.

The latest quarter results included profit from discontinued operations of $5.0 billion, which included a $5.3 billion pre-tax book gain on the sale of Power Grids and income tax expenses related to the divestment.

Operational earnings per share were $0.21, compared to last year's $0.33.

Revenues for the quarter declined 4 percent to $6.58 billion from prior year's $6.89 billion. Third-quarter revenues in all business areas were dampened due to the impact of COVID-19, although a strong recovery in China and ongoing cost mitigation efforts supported a strong underlying performance

Orders fell 9 percent to $6.11 billion from $6.69 billion a year ago.

Looking ahead, ABB expects fourth-quarter order and revenue growth rates to remain challenged on a year-on-year basis and revenue growth rates to decline sequentially.

Operating margins are expected to be higher year-on-year including fewer negative impacts from non-recurring items, while weakening on a sequential basis including seasonal impacts.

The company anticipates resilient cash delivery for the full year.

ABB said, "Despite an earlier recovery in China being followed by other large parts of the global economy, there remains considerable uncertainty around the continued pace of recovery. Many countries continue to face ongoing or renewed COVID-19 related restrictions, which could slow recovery, with anticipated long-term economic consequences."