{"id":160779,"date":"2022-07-21T13:04:32","date_gmt":"2022-07-21T13:04:32","guid":{"rendered":"https:\/\/precoinnews.com\/?p=160779"},"modified":"2022-07-21T13:04:32","modified_gmt":"2022-07-21T13:04:32","slug":"abb-q2-profit-weak-orders-rise-sees-improvement-ahead-stock-up","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/bitcoin\/abb-q2-profit-weak-orders-rise-sees-improvement-ahead-stock-up\/","title":{"rendered":"ABB Q2 Profit Weak, Orders Rise; Sees Improvement Ahead; Stock Up"},"content":{"rendered":"
Swiss engineering company ABB Ltd. reported Thursday weak profit in its second quarter with lower revenues, while orders climbed amid a positive market momentum. Looking ahead, the company projects higher revenues in the third quarter, and margin improvement in fiscal 2022. In Switzerland, ABB shares were gaining around 2 percent.<\/p>\n
Bjrn Rosengren, CEO, said, “Overall, I am pleased with how the teams delivered strong order growth as well as a margin in line with our long-term target. This was achieved despite the pressure from a tight supply chain, Covid-enforced lockdowns in China and the inflationary environment. Cash flow came in higher than in the first quarter, and I expect a good momentum in the second half of the year.”<\/p>\n
For the third quarter, the company anticipates double-digit comparable revenue growth and the Operational EBITA margin to sequentially improve, excluding the 60 basis points positive impact from special items in the second quarter.<\/p>\n
The company said it anticipates further easing of component supply in the coming quarters.<\/p>\n
For fiscal 2022, ABB expects a steady margin improvement towards the 2023 target of at least 15 percent, supported by increased efficiency. The company also projects support from a positive market momentum and strong order backlog.<\/p>\n
For the second quarter, net income attributable to the company declined 50 percent to $379 million from last year’s $752 million.<\/p>\n
Basic earnings per share were $0.20, down 47 percent from $0.37 a year ago.<\/p>\n
Income from operations fell 46 percent from last year to $587 million. Operational EBITA was $1.14 billion, up 2 percent from prior year’s $1.11 billion. Comparable operational EBITA grew 9 percent.<\/p>\n
Operational EBITA margin was 15.5 percent, up from 15.0 percent a year ago. <\/p>\n
Revenues dropped 3 percent to $7.25 billion from last year’s $7.45 billion, despite positives of strong price execution and increased volumes. Comparable revenue growth was 6 percent.<\/p>\n
Comparable revenues increased in all business<\/span> areas except for Robotics & Discrete Automation. <\/p>\n Orders were $8.81 billion, a growth of 10 percent on a reported basis and 20 percent on a comparable basis. Comparable orders increased at a double-digit rate in all regions.<\/p>\n Order backlog was $19.5 billion.<\/p>\n In Switzerland, ABB shares were trading at 27.74 Swiss francs, up 1.54 percent.<\/p>\n For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com <\/p>\n