Business Wire

ABB: Q2 2022 Results

Share

Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220720005866/en/

  • Orders $8.8 billion, +10%; comparable1 +20%
  • Revenues $7.3 billion, -3%; comparable +6%
  • Income from operations $587 million; margin 8.1%
  • Operational EBITA1 $1,136 million; margin1 15.5%
  • Basic EPS $0.20; -47%2
  • Cash flow from operating activities $382 million

KEY FIGURES

 

 

 

 

 

 

 

 

 

 

 

CHANGE

 

 

CHANGE

($ millions, unless otherwise indicated)

Q2 2022

Q2 2021

US$

Comparable1

H1 2022

H1 2021

US$

Comparable1

Orders

8,807

7,989

10%

20%

18,180

15,745

15%

24%

Revenues

7,251

7,449

-3%

6%

14,216

14,350

-1%

7%

Gross Profit

2,290

2,508

-9%

 

4,571

4,776

-4%

 

as % of revenues

31.6%

33.7%

-2.1 pts

 

32.2%

33.3%

-1.1 pts

 

Income from operations

587

1,094

-46%

 

1,444

1,891

-24%

 

Operational EBITA1

1,136

1,113

2%

9% 3

2,133

2,072

3%

9% 3

as % of operational revenues1

15.5%

15.0%

+0.5 pts

 

14.9%

14.4%

+0.5 pts

 

Income from continuing operations, net of tax

406

789

-49%

 

1,049

1,340

-22%

 

Net income attributable to ABB

379

752

-50%

 

983

1,254

-22%

 

Basic earnings per share ($)

0.20

0.37

-47%2

 

0.51

0.62

-18%2

 

Cash flow from operating activities4

382

663

-42%

 

(191)

1,206

n.a.

 

Cash flow from operating activities in continuing operations

385

663

-42%

 

(179)

1,186

-115%

 

 

 

 

 

 

 

 

 

 

 

1

For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q2 2022 Financial Information.

2

EPS growth rates are computed using unrounded amounts.

3

Constant currency (not adjusted for portfolio changes).

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.”

Björn Rosengren, CEO

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 China and the inflationary environment. Cash flow came in higher than in the first quarter, and I expect a good momentum in the second half of the year.

We achieved a strong order growth of 10% (20% comparable) and we saw a positive development in all major customer segments. While changes in exchange rates weighed on the total, comparable orders increased at a double-digit rate in all regions. With all business areas in double-digit growth, order intake amounted to $8,807 million and a record-high order backlog of $19.5 billion.

In total, revenues declined by 3% (up 6% comparable), year-on-year. Negative impact from changes in exchange rates and portfolio changes outweighed the positives of strong price execution and increased volumes, with the latter somewhat held back by the strained supply chain. Comparable revenues increased in all business areas except for Robotics & Discrete Automation which together with the Distribution Solutions division in Electrification, are where customer deliveries were materially slowed by component shortages. Overall, the supply chain constraints slightly eased compared with the previous quarter, however we saw temporary pressure on customer deliveries in China where lockdowns slowed down logistics somewhat more than expected. We anticipate further easing of component supply in the coming quarters.

I am pleased that we managed to improve the Operational EBITA margin to 15.5%. Notably, our teams successfully offset inflationary effects such as input costs and freight through strong pricing execution and higher volumes. Process Automation noted a sharp 180 basis point improvement to its margin, year-on-year. I am also pleased with the performance levels in Electrification and Motion, although margins declined from last year’s high levels. Robotics & Discrete Automation is the area with operational underperformance, triggered by customer deliveries materially hampered by lockdowns in China and semiconductor shortages. Additionally, results were supported by lower than anticipated costs in Corporate and Other including a positive margin impact of approximately 60 basis points related to the exit of a legacy project and a real estate sale which came through sooner than expected.

Looking at Income from operations, it included items impacting comparability of approximately $250 million.These include the earlier mentioned charge of $195 million triggered by us exiting the largest legacy project exposure in non-core operations, namely the full-train retrofit business. It also includes the financial impact of our decision to exit the Russian market, triggered by the ongoing war in Ukraine and impact of related international sanctions. We have started the process of winding down the remaining activities in Russia. This triggered a charge of $57 million, of which $23 million will impact cash flow in the third quarter.

The balance sheet is robust, although year-on-year the cash flow from operating activities in continuing operations declined to $385 million, mainly on a higher build-up of net working capital. That said, we have continued to execute on our share buyback program, and just after the close of the second quarter we successfully delivered on our promise to return to shareholders the remaining $1.2 billion - out of the total of $7.8 billion - from the Power Grids proceeds. We will now continue with the execution of our ongoing buyback program of up to $3 billion.

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 SIX Swiss Exchange as and when market conditions are constructive. Meanwhile, building on the earlier seed stage investment three years ago, the E-mobility team has agreed to acquire a controlling interest in Numocity, a leading digital platform for EV charging in India. This deal allows E-mobility to leverage on the regional opportunity from increasing demand for charging solutions for two and three-wheelers, cars and light commercial vehicles. After the close of the second quarter, we decided to spin off the Accelleron business (Turbocharging) with a planned listing on SIX Swiss Exchange on October 3, subject to approval by the Extraordinary General Meeting. I am pleased about this as it allows for shareholders to realize the full value of Accelleron while allowing ABB to focus on its core areas of electrification and automation.

Björn Rosengren
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 15%, supported by increased efficiency as we fully incorporate the decentralized operating model and performance culture in all our divisions. Furthermore, we expect support from a positive market momentum and our strong order backlog.

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.

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland

Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com

Investor Relations
Phone: +41 43 317 71 11
Email: investor.relations@ch.abb.com

About Business Wire

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Feeling ’22: Mary Kay Inc. Announces Awards, Milestones, and Accomplishments From First Half of the Year28.7.2022 20:02:00 EEST | Press release

Mary Kay Inc. is feeling ’22. Throughout the first half of the year, the iconic global entrepreneurship company has furthered its innovations in skin science, continued its social impact efforts, and garnered several prestigious awards for its business and leadership. It’s a thing of beauty—and the nearly 60-year-old brand is just getting started. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220728005228/en/ Mary Kay logo (Graphic: Mary Kay Inc.) 2022 AWARDS & HIGHLIGHTS 30 total awards for business excellence, social impact and sustainability 10 employer awards recognizing Mary Kay as a great place to work and for operational excellence 7 awards for Mary Kay’s c-suite and senior leadership 17 self-released reports reinforcing Mary Kay’s operational and philanthropic efforts supporting its sustainability commitments for its Enriching Lives Today for a Sustainable Tomorrow strategy 3 mentions in annual reports from social i

Asaf Ashkenazi Named CEO of Verimatrix28.7.2022 19:00:00 EEST | Press release

Regulatory News: Verimatrix (Euronext Paris: VMX) (Paris:VMX), today announced the appointment of Asaf Ashkenazi as Chief Executive Officer effective Monday, August 1st, 2022. Amedeo D’Angelo, Chairman and Chief Executive Officer since 2015, remains Executive Chairman of Verimatrix effective the same day. Asaf Ashkenazi joined Verimatrix in 2018 and currently serves as Chief Operating Officer. He will lead the company’s ongoing business model transformation announced last year that focuses on recurring subscription-based revenue sources and new products. “This evolution and reinforcement of the Verimatrix governance structure aligns well with the company’s needs as we further the progression of our business model,” Amedeo D’Angelo said. “I look forward to working closely with Asaf in his newly expanded role as CEO during this strategic development of Verimatrix.” Previously leading the company’s R&D, product, sales and marketing operations, Asaf Ashkenazi will continue to harness his d

GUESS Heads to Granada for the 2022 Fall/Winter Advertising Campaign28.7.2022 18:00:00 EEST | Press release

The new GUESS Fall-Winter 2022 advertising campaign sees the brand off to explore the history-steeped streets of Granada, Spain. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220728005098/en/ GUESS Heads to Granada for the 2022 Fall/Winter Advertising Campaign (Photo: Business Wire) The FW22 campaign is immortalized through the lens of fashion photographer Tatiana Gerusova, under the guidance of GUESS?, Inc.’s Chief Creative Officer, Paul Marciano. The new campaign features a sizzling lineup: German-born, Polish fashion model Kim Dammer, Serbian model Nina Kostić, Spanish model Lidia Santos, Italian model Mario Ermito, and French model Xavier Grey. GUESS Women The campaign showcases an enticing array of GUESS pieces, highlighting must-have accessories and elevated animal and botanical prints. The collection brings a fresh and youthful breeze of contemporary color and style to grey winter days. Against the alluring continent

Innovaderm Bolsters European Presence With Two Newly-Established Operations Hubs (Spain & Poland)28.7.2022 17:00:00 EEST | Press release

Innovaderm announced today that its strategic European expansion initiative has reached a major milestone with the launch of two key centres of operations in Poland and Spain. Biotechnology and pharmaceutical companies can officially partner with the CRO’s team of experts in Europe to manage clinical trials in psoriasis, acne, atopic dermatitis and other dermatology indications. This includes adherence to stringent regulatory requirements, patient recruitment, site selection, clinical monitoring and protocol writing. “To date, we have successfully completed more than 500 clinical trials at 2,900 sites,” says Dave Selkirk, Innovaderm’s Chief Operating Officer. “The presence of two operations hubs in Europe will allow us to go one step further and accelerate the development of promising therapies that have the potential to transform lives. As we look to the future, our goal is to continue supporting innovation in research and the increasing number of patients with skin conditions worldwi

Echosens Partners with World Hepatitis Alliance on World Hepatitis Day, July 28, Urges Importance of Testing and Treatment28.7.2022 16:07:00 EEST | Press release

Echosens, a high-technology company offering liver diagnostic solutions, establishes its support of World Hepatitis Day (WHD), July 28 by partnering with the World Hepatitis Alliance as a bronze sponsor. The commemoration calls for greater awareness of the 357 million people who live with viral hepatitis but are unaware of it. The campaign’s theme “I can’t wait” highlights the need to accelerate the fight against viral hepatitis and the importance of testing and treatment for the real people who need it. “Echosens recognizes that every 30 seconds, someone in the world dies from a hepatitis-related illness, and we join hands with organizations throughout the world to advance increased vigilance around liver health,” says Dominque Legros, Echosens Group CEO. “It is gratifying to see that this year's theme for World Hepatitis Day aligns with our mission for early detection that can result in more effective intervention, treatment and better outcomes.” Viral hepatitis is an inflammation of

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom