ABB: Q2 2022 Results
Strong demand and good operational performance
-
Orders
, +$8.8 billion 10% ; comparable1 +20% -
Revenues
, -$7.3 billion 3% ; comparable +6% -
Income from operations
; margin$587 million 8.1% -
Operational EBITA1
; margin1$1,136 million 15.5% -
Basic EPS
; -$0.20 47% 2 -
Cash flow from operating activities
$382 million
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CHANGE |
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CHANGE |
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($ millions, unless otherwise indicated) |
Q2 2022 |
Q2 2021 |
US$ |
Comparable1 |
H1 2022 |
H1 2021 |
US$ |
Comparable1 |
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Orders |
8,807 |
7,989 |
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18,180 |
15,745 |
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Revenues |
7,251 |
7,449 |
- |
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14,216 |
14,350 |
- |
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Gross Profit |
2,290 |
2,508 |
- |
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4,571 |
4,776 |
- |
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as % of revenues |
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-2.1 pts |
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-1.1 pts |
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Income from operations |
587 |
1,094 |
- |
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1,444 |
1,891 |
- |
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Operational EBITA1 |
1,136 |
1,113 |
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2,133 |
2,072 |
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as % of operational revenues1 |
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+0.5 pts |
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+0.5 pts |
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Income from continuing operations, net of tax |
406 |
789 |
- |
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1,049 |
1,340 |
- |
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Net income attributable to ABB |
379 |
752 |
- |
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983 |
1,254 |
- |
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Basic earnings per share ($) |
0.20 |
0.37 |
- |
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0.51 |
0.62 |
- |
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Cash flow from operating activities4 |
382 |
663 |
- |
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(191) |
1,206 |
n.a. |
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Cash flow from operating activities in continuing operations |
385 |
663 |
- |
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(179) |
1,186 |
- |
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1 |
For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q2 2022 Financial Information. |
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2 |
EPS growth rates are computed using unrounded amounts. |
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3 |
Constant currency (not adjusted for portfolio changes). |
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4 |
Amount represents total for both continuing and discontinued operations. |
“I am pleased with our performance and that we have taken yet another step toward our long-term margin target. I am also delighted that we are moving ahead with the spin-off of Accelleron and its planned listing in Switzerland.”
CEO summary
Overall, I am pleased with how the teams delivered strong order growth as well as a margin in line with our long-term target. This was achieved despite the pressure from a tight supply chain, Covid-enforced lockdowns in
We achieved a strong order growth of
In total, revenues declined by
I am pleased that we managed to improve the Operational EBITA margin to
Looking at Income from operations, it included items impacting comparability of approximately
The balance sheet is robust, although year-on-year the cash flow from operating activities in continuing operations declined to
On the back of the volatile financial markets, we decided to postpone the planned IPO of our E-mobility business. We will monitor the market conditions and are fully committed to proceed with a listing on the
CEO
Outlook
In the third quarter of 2022, we anticipate double-digit comparable revenue growth and the Operational EBITA margin to sequentially improve, excluding the 60 basis points positive impact from special items in the second quarter.
In full-year 2022, we expect a steady margin improvement towards the 2023 target of at least
The complete press release including the appendices is available at www.abb.com/news.
ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220720005866/en/
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Source: ABB