Swiss' engineering giant ABB more than doubles second quarter profit

Zurich, July 22, (dpa-AFX/GNA) - Swiss engineering company ABB Ltd.(ANN.L, ABB) Thursday reported that its second-quarter net income attributable to the company climbed 136 per cent to 752 million dollars from last year's 319 million dollars.

Basic earnings per share were 37 cents, up from 15 cents last year.

Operational EBITA was 1.11 billion dollars, up 71 per cent from prior year's 651 million dollars.

Revenues were 7.45 billion dollars, 14 per cent higher than prior year's 6.15 billion dollars. Orders were 7.99 billion dollars, up 32 per cent from 6.05 billion dollars a year ago.

Looking ahead, ABB anticipates growth rates in the third quarter to reflect the low level of business activity in last year's third quarter.

Based on the current market situation, comparable revenues are expected to grow around 10 per cent, with orders growing more than revenues.

In the third quarter, higher demand and service revenues should be supportive to the Operational EBITA margin year-on-year, however some sequential adverse impact is expected from rising raw material costs, component shortages as well as increasing travel spend as pandemic-related restrictions ease.

ABB anticipates comparable revenue growth of just below 10 per cent, compared to previous view of around 5 per cent or more for full-year 2021.

In 2021, ABB expects a strong pace of improvement from 2020 toward the 2023 operational EBITA margin target of the upper half of the 13 per cent-16 per cent range. The company previously expected a steady pace of improvement.