ABB Outlines Accelleron's 2022, Midterm Targets Ahead of Planned Spinoff
August 31 2022 - 2:41AM
Dow Jones News
By Pierre Bertrand
Accelleron Industries AG's owner, ABB Ltd., on Wednesday laid
out the business's full-year 2022 and midterm financial targets
ahead of a planned spinoff deal that could see it listed in
Switzerland in early October.
ABB said Accelleron, which produces and services turbochargers
and its components for engines, expects operational net income
roughly at $150 million and to achieve an operational earnings
before interest, taxes and amortization margin of around 24%.
ABB said that Accelleron expects revenue to grow organically by
approximately 6% in 2022 and, barring any unforeseen events, that
it intends to pay its first dividend of around $75 million in the
first half of next year.
In 2021, Accelleron generated revenue of $756 million with an
operating margin of 25%.
ABB, a Swiss-based technology company, said Accelleron intends
to grow faster than its competitors and will focus on increasing
its market share in its core marine and energy markets.
"Targeted bolt-on acquisitions are planned to be complementary
to Accelleron's existing portfolio and will be subject to a
disciplined strategic fit and value creation," ABB said.
Looking ahead, ABB said Accelleron foresees a midterm organic
revenue compound annual growth rate of between 2% and 4%, with an
operational Ebita margin of between 23% and 26%.
ABB in July said that it intends to spin off Accelleron and list
the company on the SIX Swiss Exchange on Oct. 3.
The deal is subject to approval by ABB shareholders who are
scheduled to meet on Sept. 7.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
August 31, 2022 02:26 ET (06:26 GMT)
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