ABB Turns To Profit From Cont. Opns In Q3, Orders Climb; Cuts FY21 Revenue Growth View - Quick Facts

(RTTNews) - Swiss engineering company ABB Ltd.(ANN.L, ABB) Thursday reported that its third-quarter net income attributable to ABB plunged 86 percent to $652 million from last year's $4.53 billion. Basic earnings per share were $0.33, down 85 percent from $2.14 a year ago.

On a continuing operations basis, profit was $687 million, while last year's loss was $503 million.

Operational EBITA increased 35 percent year-on-year to $1.06 billion, and margin expanded by 310 basis points, to 15.1 percent.

Revenues grew 7 percent to $7.03 billion from last year's $6.58 billion. Comparable revenues increased 4 percent with strong demand. Revenues were hampered by supply chain constraints delaying customer deliveries.

Orders climbed 29 percent on a reported basis and 26 percent on a comparable basis to $7.87 billion.

Looking ahead, for the fourth quarter, ABB anticipates a continued tight supply chain to impact customer deliveries. Comparable revenue growth is estimated to be broadly similar to the third quarter.

The Operational EBITA margin in the fourth quarter is expected to decline sequentially in line with recent historical pattern.

Further, for fiscal 2021, ABB now anticipates comparable revenue growth of 6 percent to 8 percent, lower than previously expected growth view of just below 10 percent, hampered by supply constraints towards the end of the year.

In 2021, the company continues to expect 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.