By Mauro Orru 

ABB Ltd. said Thursday that it is raising its revenue guidance for 2021 after preliminary figures for the first quarter showed a stronger-than-expected market development, particularly in the latter part of March.

The Swiss engineering company said it now expects comparable revenue growth of around 5% or higher in 2021, instead of comparable revenue growth broadly in line with its long-term target range, as previously expected.

The decision comes as ABB said first-quarter revenue rose to around $6.90 billion from $6.22 billion on year, while orders increased to about $7.75 billion from $7.35 billion.

ABB's operational earnings before interest, taxes and amortization margin for the quarter rose to around 13.5% from 10.2%, the company said.

"Quarterly demand is likely to have been supported by customer stock-building activities related to both component availability constraints and rising commodity prices in the industry," ABB said in a statement.

ABB will publish full first-quarter results on April 27.


Write to Mauro Orru at; @MauroOrru94


(END) Dow Jones Newswires

April 15, 2021 01:19 ET (05:19 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.