ABB has updated its financial targets during the Capital Markets Day, lifting revenue growth expectations to 4-7% through the economic cycle, with an operational EBITA margin target set at at least 15% beginning in 2023. CEO Björn Rosengren noted robust demand despite supply chain challenges. The company aims to enhance its sustainable transport offerings, which currently account for approximately 10% of group order intake. ABB plans continued acquisitions, leveraging strong cash flow generation while implementing an ABB Circularity Framework as part of its 2030 Sustainability Strategy.
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ABB has signed a framework agreement with Zume to produce 100% compostable packaging from plant-based materials. Using ABB robots, Zume aims to automate the production process, reducing reliance on single-use plastics. Under the agreement, more than 1,000 manufacturing cells will be implemented worldwide over five years, potentially producing billions of sustainable packaging pieces annually. This partnership is part of an effort to alleviate global plastic waste, as less than 10% of produced plastic is recycled. ABB's advanced robotics are positioned to enable cost-effective sustainable packaging solutions.
ABB reported Q3 2021 with strong demand reflected in orders of $7.9 billion, up 29% year-on-year. Revenue reached $7.0 billion, increasing by 7%, while operational EBITA rose 35% to $1,062 million, with a margin of 15.1%. However, net income dropped 86% to $652 million, and basic EPS fell to $0.33. The company announced divesting its Mechanical Power Transmission division for $2.9 billion and acquiring ASTI Mobile Robotics. Despite supply chain challenges, strong cash flow of $1.1 billion was achieved.
ABB has launched the Terra 360, an innovative all-in-one Electric Vehicle (EV) charger capable of fully charging vehicles in under 15 minutes. This modular charger can charge up to four vehicles simultaneously with a maximum output of 360 kW, making it ideal for various applications, including retail and fleet charging. The Terra 360 is set to be available in Europe by the end of 2021 and in the USA, Latin America, and Asia Pacific in 2022. ABB continues to lead in the EV infrastructure market, having sold over 460,000 chargers globally.
ABB has partnered with Lightning eMotors to provide a range of DC fast chargers, between 20 kW and 350 kW, specifically for commercial electric fleet vehicles. Available for immediate order through Lightning Energy, these interoperable chargers promise around-the-clock connectivity and robust remote service capabilities. Lightning eMotors will incorporate ABB's technology into its fleet electrification solutions, which include comprehensive services from charging hardware to management software. Since 2010, ABB has sold over 400,000 electric vehicle chargers globally, showcasing its commitment to enhancing e-mobility.
ABB Ltd has announced the expiration of its cash tender offer for two bond series, specifically the 3.800% Notes due 2028 and 4.375% Notes due 2042. The tender offer, which ended on October 30, 2020, saw valid tenders of approximately US $366.8 million for the 2028 notes and US $140.5 million for the 2042 notes. Payment for these notes is expected on November 4, 2020. The offer was facilitated by Merrill Lynch International and HSBC Bank plc, with D.F. King & Co., Inc. acting as the tender agent.
ABB Ltd announced the total consideration for its cash tender offer for the 3.800% Notes due 2028 and 4.375% Notes due 2042. The total considerations for the Notes are $1,193.72 for the 3.800% Notes and $1,325.34 for the 4.375% Notes, as calculated today. The Offer expires at 5:00 p.m. NYC time on October 30, 2020. Holders whose Notes are accepted will receive accrued interest up until November 4, 2020. Results will be announced on November 2, 2020. ABB emphasizes that the Offer is subject to certain conditions and urges holders to review the Offer to Purchase.
On October 26, 2020, ABB Ltd announced a cash tender offer for all outstanding 3.800% Notes due 2028 and 4.375% Notes due 2042. The total principal amount for each series is $750 million. This initiative aims to manage ABB's debt portfolio more effectively, reduce future interest expenses, and enhance liquidity for noteholders. The offer is set to expire on October 30, 2020, by 5:00 PM New York City time, with results expected to be announced on November 2, 2020.