Business Wire

ABB

22.7.2021 06:49:11 CEST | Business Wire | Press release

Share
ABB: Q2 2021 Results

ABB (SWX:ABBN):

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210721006023/en/

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

KEY FIGURES

 

 

 

 

 

 

 

 

 

 

 

CHANGE

 

 

CHANGE

($ millions, unless otherwise indicated)

Q2 2021

Q2 2020

US$

Comparable1

H1 2021

H1 2020

US$

Comparable1

Orders

7,989

6,054

32%

24%

15,745

13,400

18%

11%

Revenues

7,449

6,154

21%

14%

14,350

12,370

16%

11%

Gross Profit

2,508

1,987

26%

 

4,776

3,897

23%

 

as % of revenues

33.7%

32.3%

+1.4 pts

 

33.3%

31.5%

+1.8 pts

 

Income from operations

1,094

571

92%

 

1,891

944

100%

 

Operational EBITA1

1,113

651

71%

59% 3

2,072

1,287

61%

50% 3

as % of operational revenues 1

15.0%

10.6%

+4.4 pts

 

14.4%

10.4%

+4 pts

 

Income from continuing operations, net of tax

789

395

100%

 

1,340

721

86%

 

Net income (loss) attributable to ABB

752

319

136%

 

1,254

695

80%

 

Basic earnings per share ($)

0.37

0.15

150%2

 

0.62

0.33

91%2

 

Cash flow from operating activities4

663

680

-3%

 

1,206

103

n.a.

 

Cash flows from operating activities in continuing operations

663

648

2%

 

1,186

252

n.a.

 

“I am very encouraged that we have delivered a clearly improved performance. The strong upturn in Operational EBITA margin reflects the recovery in demand in combination with increased internal efficiency and the strength of ABB’s electrification and automation offerings. We will continue to sharpen our focus on profitability through innovation, sustainability and digitalization, while actively managing our portfolio.”

Björn Rosengren , CEO

CEO Summary

The underlying customer activity in the second quarter increased slightly on a sequential basis. However, orders and revenues increased significantly compared with last year’s low levels, when the adverse business impact of the COVID-19 pandemic was at its peak. Double-digit order growth was reported in all business areas driven by a broad-based improvement across most short-cycle customer segments and a positive development in several process-related businesses. Growth was to some extent supported by customers stock-building.

We improved Operational EBITA by 71% and the Operational EBITA margin increased to the high level of 15.0%, up 440 basis points, year-on-year. Results were supported by the recovery in demand in combination with the impact from earlier implemented cost measures, as well as ongoing restricted travel spending. An additional effect was derived from proactive price measures taken to mitigate the expected increase in headwinds from higher commodity prices. I am pleased to see how well the team has handled certain component shortages, whereby managing to limit the impact on customer deliveries. Despite active management of the situation the tight supply of certain components, such as semiconductors, is expected to continue in the coming quarter. The strong earnings converted into cash flow from operating activities in continuing operations of $663 million, improving slightly from last year. I am pleased with how the team managed to keep net working capital broadly stable year-on-year in this strong growth environment. Our strong cash generation in the first half of the year provides a good base to deliver on our guidance of a solid cash flow in 2021.

During the second quarter Robotics & Discrete Automation broadened its automation offering to the construction segment. Robotic automation is not yet widely used in this industry and we see potential to increase efficiency in areas such as fabrication of modular homes, welding and material handling. Additionally, it was good to receive the prestigious Innovation and Entrepreneurship in Robotics & Automation (IERA) award for our PixelPaint robotic non-overspray technology for the automotive industry.

We made further progress toward our long-term sustainability target of reducing emissions and achieving carbon neutrality in our own operations by 2030 by joining three initiatives led by the international non-profit Climate Group. They include electrifying our fleet of more than 10,000 vehicles, sourcing 100% renewable electricity, as well as establishing energy efficiency targets and continuing to deploy energy management systems at our sites. Furthermore, our targets have received approval by the Science Based Targets initiative (SBTi) confirming they are in line with the Paris Agreement. ABB also joined the Business Ambition for 1.5°C Campaign, a global coalition of UN agencies, business and industry leaders, led by the UN Global Compact (UNGC).

I am pleased to see that our increased focus on acquired growth resulted in Robotics & Discrete Automation acquiring ASTI, after the close of the second quarter. It is a leading global mobile robotics manufacturer and this transaction will expand our offering to make ABB the only company to offer a holistic automation portfolio for the entire value chain, helping customers replace today’s linear production lines with fully flexible networks. Going forward, I expect to see more of these small- to mid-sized bolt-on deals as the divisions fill up their target pipelines. We have also made good progress with the announced portfolio changes and I expect to announce an agreement for a divestment during the third quarter.

Björn Rosengren
CEO

Outlook

ABB anticipates growth rates in the third quarter of 2021 to reflect the low level of business activity in Q3 2020. Based on the current market situation, comparable revenues are expected to grow ~10%, with orders growing more than revenues.

In the third quarter , higher demand and service revenues should be supportive to the Operational EBITA margin year-on-year, however some sequential adverse impact is expected from rising raw material costs, component shortages as well as increasing travel spend as pandemic-related restrictions ease.

ABB anticipates comparable revenue growth of just below 10% (update from ~5% or more) for full-year 2021 , with the process industry related part of the business expected to recover during the second half of the year.

In 2021 , ABB expects a strong (update from steady) pace of improvement from 2020 toward the 2023 operational EBITA margin target of the upper half of the 13%-16% range.

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.

1 For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q2 2021 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.

Link:

ClickThru

About Business Wire

Business Wire
Business Wire
101 California Street, 20th Floor
CA 94111 San Francisco

http://businesswire.com

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

Belkin Expands Nintendo Switch 2 Accessories Ecosystem With New Charging Grip and Travel Bag4.6.2026 18:00:00 CEST | Press release

Following the January debut of Charging Case Pro, Belkin broadens its gaming portfolio with new ways to power, carry, and play Today, Belkin, a leading consumer electronics brand for 40 years, announced the expansion of its Nintendo Switch 2 accessories ecosystem with the launch of the GamingCharging Grip for Nintendo Switch 2 and Gaming Travel Bag for Nintendo Switch 2. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260604082278/en/ Belkin expands Nintendo Switch 2 accessories ecosystem with new Charging Grip and Travel Bag Following the January debut of the award-winning Charging Case Pro, the new accessories build on Belkin’s growing gaming portfolio, offering players more ways to power, protect and carry their gaming essentials wherever they play. After entering the gaming accessories category in June 2025, Belkin continues to expand its ecosystem with thoughtfully designed products that combine premium materials, practi

DEWA Opens Registration for WETEX 20264.6.2026 17:55:00 CEST | Press release

Dubai Electricity and Water Authority (DEWA) has opened registration for the 28th edition of the Water, Energy, Technology and Environment Exhibition (WETEX), which will take place from 20 to 22 October 2026 at the Dubai World Trade Centre. One of the leading specialised exhibitions of its kind in the world and the largest in the region, WETEX is convened by DEWA under the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the patronage of HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260604642265/en/ DEWA opens registration for WETEX 2026 (Photo: AETOSWire) WETEX covers a wide range of sectors, including energy, water, environment, green development, digital transformation, artificial intelligence (AI), sustainability, decarbonisation, green mobility, green hydroge

LotusFlare’s DNO™ Cloud Powers the Launch of Pi in South Africa4.6.2026 17:49:00 CEST | Press release

LotusFlare, a leading provider of cloud-native, AI-driven digital commerce and monetization platforms for communications service providers (CSPs), today announced its partnership with MTN South Africa to power the launch of its new digital brand, Pi. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260604149542/en/ At the core of Pi is LotusFlare’s DNO™ Cloud—a fully digital, cloud-native BSS platform that enables delivering a seamless, app-first customer experience at scale. From onboarding to plan management, Pi customers can access 5G mobile, fixed wireless, and travel eSIM services within minutes—without contracts, credit checks, or call centres—through a single, intuitive interface. DNO™ Cloud underpins the entire Pi ecosystem, including front-end digital experiences, product catalog, order management, converged charging, billing, and eSIM orchestration. Deployed on public cloud infrastructure in compliance with South Afr

INRIX Sets the Standard for Predictive and Accurate Parking Intelligence4.6.2026 17:42:00 CEST | Press release

INRIX now has the most parking data in the industry covering 22K cities and 48M spaces INRIX, Inc., a global leader in transportation intelligence, today announced a significantly expanded deployment of its predictive parking and curb intelligence platform, reinforcing its position as the industry’s most comprehensive and decision-grade parking intelligence solution for automotive OEMs, cities, and mobility platforms worldwide. INRIX provides real world coverage based on how parking actually works on-street, off-street, dynamic availability and driver behavior. Others count locations. INRIX understands parking ecosystems. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260604808273/en/ Parking Intelligence for a New Era of Mobility Parking Intelligence for a New Era of Mobility Parking data has traditionally been evaluated based on volume, how many locations are listed, or how many attributes are captured. But as mobility evo

Steady concentration PD with the Carry Life UF system increased ultrafiltration nearly threefold and sodium removal nearly tenfold vs 2.5% dextrose CAPD, while improving glucose efficiency and supporting enhanced fluid management in PD patients4.6.2026 16:45:00 CEST | Press release

Triomed AB today announced positive results from a prospective, multicenter, randomized, crossover study evaluating steady concentration peritoneal dialysis using the Carry Life UF system in adult patients undergoing CAPD. The study demonstrated significant improvements in ultrafiltration, peritoneal sodium removal and glucose ultrafiltration efficiency (ultrafiltration volume in relation to glucose absorption) compared with standard 2.5% dextrose CAPD in the home setting over four weeks. The study results were presented as a Focussed Oral presentation based on a late-breaking clinical trial abstract at the European Renal Association (ERA) Congress in Glasgow, United Kingdom, and simultaneously published in the Journal of the American Society of Nephrology (JASN). In this study, participants received their standard CAPD treatment during the control arm, whereas in the Carry Life UF arm, one daily 2.5% dextrose exchange was replaced by a Carry Life UF treatment three days per week, and

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
World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye