Business down for ABB in Q3
Faced with the effects of the Covid-19 pandemic, Zurich electrical engineering giant ABB has seen its orders, sales and profitability contract in the space of a year.
Between July and the end of September, net profit attributable to ABB shareholders alone soared to 4.53 billion dollars (4.07 billion francs), against 515 million twelve months previously, writes ABB on Friday. However, this result includes a 5 billion income related to the sale to Japanese Hitachi of most of the activities of the Power Grids unit.
Operating income before interest, taxes and depreciation (Ebita), for its part, fell 2% to $ 787 million. At constant exchange rates, the decline was 5%. However, the corresponding margin improved by 30 basis points to 12%.
Sales fell 4% to $ 6.58 billion. Excluding currency effects and changes in the scope of consolidation, sales also contracted on an organic basis by 4%. ABB was thus able to do better than in the previous quarter when revenues fell 10% on an adjusted basis.
The development was similar for new orders, which fell in organic terms by 8% to $ 6.11 billion. In the second quarter, orders received by ABB had plunged by 14%.
The group’s overall performance, however, proved to be higher than analysts’ expectations. Surveyed by AWP, they had anticipated average revenues of $ 6.24 billion, new orders of 6.06 billion and an Ebita of 675 million.
Referring to the rest of the year, ABB is counting on a difficult partial fourth, with revenues expected to decline compared to the quarter under review. However, margins should once again grow year-on-year. (AWP)