ABB 2Q Net Profit More Than Doubled; Raises 2021 Guidance

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 [e-mail]

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(END) Dow Jones Newswires

July 22, 2021 01:48 ET (05:48 GMT)

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