Orders received were close to $9.4 billion, up 21%, while sales climbed 1% to $6.97 billion.
The electrical engineering and automation group ABB saw its order intake grow more than its sales in the first three months of the year. Its profit took off. In the second quarter, he expects a similar development in activity.
New orders came close to 9.4 billion dollars, up 21%, while turnover climbed 1% to 6.97 billion, details a situation update on Thursday. The group saw its order intake being driven by “a high level of general activity” from its customers and not by large orders. On the sales side, they were supported by positive development in all units, except Robotics & Discrete Automation, hampered by component shortages.
At the operational level, the operating surplus (Ebita) shrank by 4% to 997 million for an improved related margin of 14.3% after 13.8% a year earlier, thanks to high volumes but also to cost compensation for cost inflation, mainly related to raw materials, certain components, logistics and “tight” labor markets.
Net profit was 604 million, up 20%, due to higher earnings from continuing operations and lower net financial expenses.
Order intake far exceeds the expectations of analysts consulted by AWP, when sales, Ebita and net income fall within the range of estimates.
For the second quarter, ABB is betting on activity similar to that at the start of the year. Over this period, “revenues tend to be sequentially stronger in absolute terms,” according to the statement, assuming that there is no tightening of containments in China.
He clarified that the Middle Kingdom’s anti-Covid strategy had no “significant impact” on its ability to meet deliveries to customers from January to March. It does not exclude a potential negative effect on operations due to local restrictions.
As already announced, the group expects an improvement in its operating margin (Ebita) this year to reach at least 15% from 2023. It wants to rely on “positive market dynamics”, which it anticipates, as well than on its order book.