ABB: Q2 2021 Results
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
($ millions, unless otherwise indicated)
as % of revenues
Income from operations
as % of operational revenues 1
Income from continuing operations, net of tax
Net income (loss) attributable to ABB
Basic earnings per share ($)
Cash flow from operating activities4
Cash flows from operating activities in continuing operations
“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
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.
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.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
+41 43 317 71 11
+41 43 317 71 11
About Business Wire
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
Total Telecom: Mass Production of 14nm Chips in China Will be Achieved Next Year28.7.2021 12:00:00 CEST | Press release
Total Telecom reports that after gaining competency in manufacturing 28nm chips, China is moving towards realizing mass production of 14nm chips in the coming year. According to Dr Yungang Bao, Assistant Director at the Institute of Computing Technology, the domestic 14nm chip has overcome many technical challenges and all aspects of the domestic 14nm chip will be dramatically improved, leading to mass production. 28nm chips are cost-effective and known to consume less power while delivering high performance. Total Telecom reports that the development of the 28nm technology will help the Chinese chip industry address domestic demand, as it is already a mature technology and is used in new areas such as 5G, new energy vehicles, UHV, big data centers, artificial intelligence (AI), and the industrial Internet. This is significant considering that China is the world's biggest consumer of semiconductors. 14nm chips are widely accepted as the most valuable process technology, as they have va
Gupshup Raises Additional $240 Million to Fast-Track Global Conversational Messaging Vision28.7.2021 12:00:00 CEST | Press release
Gupshup, the leader in conversational messaging, today announced it has raised an additional $240 million in follow-on funding from an industry-leading group of investors including Fidelity Management and Research Company LLC, Tiger Global, Think Investments, Malabar Investments, Harbor Spring Capital, certain accounts managed by Neuberger Berman Investment Advisers LLC, White Oak, Neeraj Arora and others.This funding round follows the $100 million raise from Tiger Global in April, at a $1.4 billion valuation. Gupshup will use this investment to continue executing its vision and for secondary purchase of shares from current and former employees as well as prior investors. Gupshup continues to invest in product innovation for digital commerce enablement as well as expanding go-to-market initiatives in mobile-first economies around the world. Gupshup is also exploring M&A opportunities to expand its business opportunities. The company earlier announced an expansion in its executive team
Workiva Extends Value of Cloud Platform with Launch of New SaaS Marketplace28.7.2021 10:15:00 CEST | Press release
Workiva Inc. (NYSE:WK), today launched The Workiva Marketplace, filled with more than 140 Workiva-built and partner templates, services and 60 no-code connectors that streamline existing processes and solve new business problems all within the Workiva cloud platform’s connected and secure ecosystem. The Workiva Marketplace’s offerings include: process checklists, carefully organized and linked reports, style guides, perfectly formatted presentations, and more. Accounting, audit, financial planning & analysis, financial services, and legal teams can easily add templates or connectors directly into an existing Workiva workspace and optimize workflow with process automation, practical examples, and industry best practices. Comments on the News: “There is an enormous opportunity for organizations to scale their business operations efficiently and cost effectively by leveraging Workiva’s connected ecosystem,” said Julie Iskow, COO of Workiva. “The Workiva Marketplace allows users to find to
Nordic Enterprises Moving Forward with SAP S/4HANA Initiatives to Meet Challenges of COVID-1928.7.2021 10:00:00 CEST | Press release
Enterprises in the Nordics are addressing the challenges of the COVID-19 pandemic by adopting cloud services and reworking their IT strategies and technology roadmaps, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm. The 2021 ISG Provider Lens™ SAP HANA Ecosystem Services report for the Nordics finds large-scale, long-term system transformations in the region, including SAP S/4HANA projects, have continued despite slowing down briefly early in the pandemic. To continue operating under the new business conditions, many companies are moving their workloads to the cloud. “With help from service providers, companies in the Nordics continue to innovate with SAP applications,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Providers’ skilled management of offshore services have kept SAP projects on plan, with only minor delays due to the pandemic.” Many enterprises
Värde Partners Agrees €96 Million Sale of Hotel Barcelona Apolo to Meliá28.7.2021 10:00:00 CEST | Press release
Värde Partners, a leading global alternative investment firm, announced it has agreed to the sale of Hotel Barcelona Apolo to Meliá Hotels International, the current hotel operator, for €96 million. The transaction followed an open bidding process that attracted interest from more than 20 institutional investors. The sale was agreed through Dospuntos Asset Management, a Värde-controlled real estate company in Spain, formed in December 2017 from the residential developer Vía Célere. Since the acquisition of the hotel in 2015 Värde has executed a series of value creation initiatives, including refinancing the business and delivering a comprehensive investment program, to establish Hotel Barcelona Apolo as a leading destination for international tourists and corporate events. “The timing of the sale reflects our conviction in the underlying quality of the hotel, and the enduring appeal of Barcelona as a destination for international capital. There was strong demand for the asset demonstra
Aqara Expands to Amazon UK28.7.2021 10:00:00 CEST | Press release
Aqara, a provider for smart home products, announced the launch of its first Amazon store in Europe, the Aqara Amazon UK store. Starting from July 28, 2021, a comprehensive suite of Aqara products will be made available on Amazon UK to residents not only in the UK, but also in dozens of European countries that are covered in the Amazon network. Aqara has been selling smart home products in Europe since 2020 via dozens of authorized distributors, and has become one of the most popular brands among the European smart home community for the high product quality, the accessible prices and the seamless integration with major ecosystems including Apple HomeKit, Amazon Alexa, Google Assistant, and more. The launch of Aqara’s first Amazon Europe store marks another milestone for the fast-growing brand, offering millions of European consumers an easy and convenient access to the Aqara product lineup. Following its UK Amazon store, Aqara is expected to add two more brand stores on Amazon France
DIC, Debut Biotech Team Up to Develop and Bio-Manufacture Natural Pigments for More Sustainable Food Colorants and Cosmetics28.7.2021 09:55:00 CEST | Press release
DIC Corporation (TOKYO:4631) announced a joint research development agreement with California-based biotech startup Debut Biotechnology, Inc., further enhancing DIC efforts to develop natural pigments for food colorants and cosmetics. In recent years, increasingly urgent climate concerns have increased global consumer demand for biodegradable, naturally derived colorants—notably in foods and cosmetics—to replace synthetic petroleum-derived colorants. This rapidly increasing consumer demand has motivated major global brands to seek out more sustainable materials for their products. Unfortunately, the increasing efforts to extract useful pigments from natural materials, including flowers or plants, continue to face significant commercialization challenges, including unacceptably low yields, excessive post-extraction waste generation, and environmental burdens, such as land and water use. Moreover, problems specific to agriculture, such as increasingly unstable weather as well as qualitat
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