ABB sees strong start to 2023 after beating Q4 earnings forecasts

ZURICH, Feb 2 (Reuters) – ABB (ABBN.S) reported better than expected earnings for its fourth quarter on Thursday, posting net profit of $1.13 billion as the Swiss engineering and group said it expected strong revenue growth at the start of 2023.

The company, whose products range from electric chargers to cars and buses and industrial motors and drives, had been forecast by analysts to post net profit of $718 million.

It said it now expected double-digit comparable revenue growth in the first quarter of 2023, and an increase above 5% for the year as a whole “despite market uncertainty.”

ABB’s earnings fell from $2.64 bln a year earlier when its figures were boosted by a $2.2 billion gain from the sale of its Power Transmission business in November 2021.

For the latest reporting period the company reported a net positive inflow from the sale of its remaining stake in its power grids business to Hitachi in December. (6501.T)

Fourth quarter revenues rose 16% on a comparable basis to $7.82 billion, beating forecasts for $7.62 billion with ABB seeing activity improving slightly or stable in most customer segments, except for declines in residential construction and discrete manufacturing.

Latest Updates

View 2 more stories

For the full year, ABB improved its operational earnings before interest, tax and amortisation margin to 15.3% and said it was aiming for the same level in 2023.

“In 2023, regardless of current market uncertainty, we want to show that we can continuously deliver an Operational EBITA margin of at least 15%,” Chief Executive Bjorn Rosengren said in a statement.

Reporting by John Revill; editing by John Stonestreet

Our Standards: The Thomson Reuters Trust Principles.