ABB 2Q Net Profit More Than Doubled; Raises 2021 Guidance
July 22 2021 - 1:03AM
Dow Jones News
By Ed Frankl
ABB Ltd. said Thursday that second-quarter net profit more than
doubled and lifted its guidance for 2021, as it recovered from when
the adverse effects of the Covid-19 pandemic on its business were
at their peak.
The Zurich-based engineering company said quarterly net profit
rose to $752 million from $319 million in the same period last
year, above expectations of $631 million from analysts polled by
FactSet.
ABB's closely watched operational earnings before interest,
taxes and amortization climbed to $1.11 billion from $651 million,
with a corresponding margin of 15%.
Second-quarter revenue rose to $7.45 billion from $6.15 billion
on year, beating consensus expectations of $7.13 billion, while
orders increased 32% to $7.99 billion.
ABB raised its full-year guidance of comparable revenue growth
for the year to just below 10% from around 5% or more, with its
process-industry related part of the business expected to recover
during the second half of the year.
For the third quarter, ABB expects some adverse impact from
rising raw-material costs, component shortages and increasing
travel spend as pandemic-related restrictions ease. However, it
anticipates higher demand and service revenues, with comparable
revenue expected to grow about 10% in 3Q, it said.
Write to Ed Frankl at edward.frankl@dowjones.com
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(END) Dow Jones Newswires
July 22, 2021 01:48 ET (05:48 GMT)
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