By Ed Frankl 
 

ABB Ltd. on Tuesday updated its targets ahead of its capital markets day, raising its earnings expectations but flagging supply-chain issues that will persist into 2022.

The Swiss engineering company increased its growth target to 4%-7% through the economic cycle, alongside honing its outlook for operational earnings before interest, taxes and amortization to at least 15% as from 2023.

The Zurich-based company previously targeted 3%-5% for revenue growth and an operational Ebita margin in the upper half of a 13%-16% range from 2023, it said.

ABB's Chief Executive Bjorn Rosengren said that the company anticipates positive market momentum in 2022 but will still have to manage supply-chain disruptions, which will most likely impact customer deliveries in the fourth quarter and at least the early part of next year.

"A sharpened focus on accountability, transparency and speed in 2022 will help drive growth, lift profitability and create further value for shareholders," he said.

The company also flagged an initial public offering for its e-mobility division in the first half of 2022, and said it expects to make five or more small- to mid-sized acquisitions a year.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

December 07, 2021 01:24 ET (06:24 GMT)

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