US economy

ABB unveils higher sales and profit targets



© Reuters.

ZURICH (Reuters) -ABB unveiled higher sales and profitability targets on Tuesday as the Swiss engineering company said it expected to benefit from higher demand from rebounding economies as well as plugging into trends like decarbonisation and shrinking workforces.

The maker of industrial automation and factory robots said it now expects annual sales to increase by 4% to 7%, up from the 3% to 5% annual growth rate it previously targeted.

In the new goals, announced ahead of its capital markets day on Tuesday, ABB said it also aimed to increase its profitability.

From 2023 the company is now aiming for a profit margin as measured in operational earnings before interest, tax, and amortization (EBITA) of “at least” 15%.

Previously it aimed for a margin of 13% to 16%, while during pandemic-hit 2020 ABB posted a margin of 11.1%.

ABB, whose competitors include Germany’s Siemens and France’s Schneider Electric (PA:), also said it would float its E-mobility electric vehicle charging business, with an initial public offering planned for Switzerland in the first half of 2022.

Reuters previously reported the business, which is benefiting from a global boom in battery-powered vehicles, could be valued at around $3 billion.

Chief Executive Bjorn Rosengren said ABB had made progress implementing his plan to decentralise the company’s sprawling operations, but the company could still do more.

“Over the last 24 months, ABB has made solid progress in implementing its decentralized organization and improving quality of revenues,” Rosengren said in a statement. “But we are still not where we want to be.”

The former Sandvik CEO, who took over at ABB in March 2020, has reorganised ABB into 18 smaller, more autonomous business units and cut headcount at the company’s head office.

Order activity has remained robust this far this year, with ABB expecting positive market momentum in 2022, Rosengren added, although supply chain disruptions which have also hit many other manufacturers would remain a problem.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.