ABB reports better-than-expected Q3 operating profit
FILE PHOTO: The logo of Hitachi ABB is seen at an office building in Zurich, Switzerland September 10, 2020. Picture taken September 10, 2020. REUTERS/Arnd Wiegmann
ZURICH -ABB reported better-than-expected core operating profit during its third quarter, with the engineering and technology company saying on Thursday it was seeing no changes in underlying customer activity which remained at a high level.
The maker of controllers, drives and electric ship motors said its operational core earnings (EBITA) rose 27 per cent on a comparable basis to $1.23 billion.
The figure beat forecasts for $1.14 billion in a company-gathered consensus.
But net profit fell 45 per cent to $360 million after the Swiss company was hit by a $325 million charge to cover costs related to investigations surrounding the Kusile power plant in South Africa, a charge it flagged last month.
ABB's operating profit margin increased by 1.5 per centage points to 16.6 per cent. Orders - a sign of future growth - increased by 16 per cent on a comparable basis, with all regions seeing improvements.
Revenue of $7.4 billion was in line with forecasts, with ABB saying components supply chain problems continued to ease while it saw less interruptions from COVID-related shutdowns in China.
"We delivered high order growth, a strong top-line development and a historically high margin," Chief Executive Bjorn Rosengren said in a statement.
"We have not seen any material changes in the underlying customer activity. It looks like we are likely to achieve our 2023 margin target one year early."
