ABB (ABBN: SIX Swiss Ex):
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KEY FIGURES
CHANGE
($ millions,
unless otherwise
indicated) Q1 2021 Q1 2020 US$ Comparable(1)
Orders 7,756 7,346 6 % 1 %
Revenues 6,901 6,216 11 % 7 %
Gross Profit 2,268 1,910 19 %
as % of revenues 32.9 % 30.7 % +2.2 pts
Income from
operations 797 373 114%
Operational
EBITA(1) 959 636 51 % 40 %(3)
as % of operational
revenues (1) 13.8 % 10.2 % +3.6 pts
Income from
continuing
operations, net of
tax 551 326 69 %
Net income (loss)
attributable to
ABB 502 376 34 %
Basic earnings per
share ($) 0.25 0.18 41 %(2)
Cash flow from
operating
activities(4) 543 (577 ) n.a.
Cash flows from
operating
activities in
continuing
operations 523 (396 ) n.a.
"After a busy year of creating the right set-up for the Group,
we are now starting to show the real potential of our underlying
businesses. Through greater accountability, transparency and speed,
we increasingly create value for our stakeholders."
Björn Rosengren
CEO
CEO summary
Market activity continued to recover from its lowest point
during the summer 2020. Demand was especially strong in the
short-cycle business, beyond our expectations. The increased
customer activity, in combination with the impact from previously
implemented cost measures, resulted in double-digit growth in
Operational EBITA, and a very high first quarter margin of 13.8%. I
am pleased to see good performance also in cash flow, which was
high for a first quarter at $523 million. That said, while there
was no material impact on results in the period, the progressively
tighter supply of certain components such as semiconductors and
plastics, is a concern. We anticipate prolonged delivery lead-times
to customers in parts of our businesses in the coming quarter. On a
separate note, we made the important launch of our new
collaborative robot families. Through this expansion of our
offering, we aim to unlock customer groups with currently a low
level of automation.
In total, we registered order growth of 6% (1% comparable),
supported by a broad recovery in most of our short-cycle
businesses. To some extent, demand is likely to have been driven by
a stock build-up related to supply chain concerns. On the downside,
growth was hampered by a weak development in the cruising and oil
& gas segments - albeit initial signs of stabilization were
noted. Overall, orders increased slightly in Europe and AMEA, with
the latter supported by a stellar growth in China. Underlying
business momentum improved in the Americas, driven by the US,
although the region faced high comparable numbers in the previous
period, which put pressure on growth rates.
I am pleased about the progress toward our 2023 margin target,
with all business areas increasing operational EBITA margin by more
than 100 basis points. That said, we are taking actions to further
improve operational performance in Process Automation, which should
also benefit from an anticipated improvement in end markets during
the latter part of the year.
We made good progress with the divestment process for the three
previously announced divisions and I expect us to sign the first
deal during the second half of the year. Furthermore, we have
turned our E-mobility business into a separate division and
initiated a carve out into a separate legal structure. These steps
will allow us to prepare for a possible public listing, creating a
platform for accelerated growth and value creation in this
business.
We held the Annual General Meeting at which the proposed
dividend of CHF 0.80 was approved. Furthermore, we announced an
additional share buyback program of up to $4.3 billion, whereby
re-confirming the intention to return $7.8 billion of cash proceeds
from the Power Grids divestment to shareholders.
Björn Rosengren
CEO
Outlook
Based on the current market situation, ABB anticipates growth
rates in the second quarter of 2021 to reflect the low level of
business activity in Q2 2020. Comparable orders and revenues are
expected to grow >10%, with orders growing more than
revenues.
The Operational EBITA margin for the Group is expected to
significantly improve year-on-year, to approximately 14%.
As announced in the recent trading update, ABB anticipates
comparable revenue growth of 5% or higher for full-year 2021, with
the process industry related part of the business expected to
recover during the second half of the year.
In 2021, ABB expects a steady pace of improvement from 2020
toward the 2023 Operational EBITA margin target of upper half of
the 13%-16% range. This excludes the combined adverse impact
related to the Kusile project and stranded costs, which weighed on
margin in 2020.
The complete press release including the appendices is available
at www.abb.com/news
ABB (ABBN: SIX Swiss Ex) is a leading global technology company
that energizes the transformation of society and industry to
achieve a more productive, sustainable future. By connecting
software to its electrification, robotics, automation and motion
portfolio, ABB pushes the boundaries of technology to drive
performance to new levels. With a history of excellence stretching
back more than 130 years, ABB's success is driven by about 105,000
talented employees in over 100 countries.
1 For a reconciliation of non-GAAP measures, see "supplemental
reconciliations and definitions" in the attached Q1 2021 Financial
Information.
2 EPS growth rates are computed using unrounded amounts.
3 Constant currency (not adjusted for portfolio changes).
4 Amount represents total for both continuing and discontinued operations.
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CONTACT: ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com
Investor Relations
Phone: +41 43 317 71 11
Email: investor.relations@ch.abb.com
SOURCE: ABB
Copyright Business Wire 2021
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