ABB Targets Strong Revenue Growth in E-Mobility Ahead of IPO
February 10 2022 - 7:14AM
Dow Jones News
By Ed Frankl
ABB Ltd. said Thursday that its electric-vehicle charging
business, which it intends to list in the second quarter of 2022,
was targeting strong 2022 growth as it takes advantage of a ramp up
in the pivot to more sustainable transport.
Ahead of a capital markets day, ABB said it is targeting revenue
growth in the E-Mobility unit of 40%-45% in 2022, and growth of
25%-30% in the midterm.
The Swiss technology company also guided for operational
earnings before interest, taxes, depreciation, and amortization at
the unit to break even in 2022, and for a midterm margin of
15%-20%.
ABB said at its fourth-quarter earnings last week that it
expects to list the unit in 2Q, a week after beefing up its
charging infrastructure offering with an acquisition of U.S.-based
InCharge Energy.
To support its growth story, ABB said E-Mobility has a funding
need of around $750 million to finance acquisitions and organic
growth investments.
The business achieved $323 million in revenue in 2021, after
taking a compound annual growth rate of around 60% between 2017 and
2021, driven by accelerating order growth, the Zurich-based company
added.
As announced earlier this week, Michael Halbherr has been
appointed the new chairman of the E-Mobility business, ABB
said.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
February 10, 2022 06:59 ET (11:59 GMT)
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