ABB matches Q3 earnings forecasts, dampens expectations for next quarter
economictimes.indiatimes.comABB matched forecasts with its third-quarter operating profit on Wednesday and dampened expectations for the fourth quarter while reporting continued decline in orders from China.
The maker of industrial drives and motors posted a 13% increase in its operational earnings before interest, tax and amortisation (EBITA) to $1.4 billion during the three months to Sept. 30, in line with a company-gathered consensus of forecasts.
Revenues at the company, which competes with Germany's Siemens and France's Schneider Electric rose 8% on a comparable basis to $8 billion, slightly below analysts' forecast for $8.1 billion.
ABB reported net income of $882 million, below the $919 million consensus forecast.
ABB, a big supplier to industry, is seen as a bellwether for the broader global economy, with its products being used in ships, ports, factories and transport systems.
The group said its order intake fell 2% during the quarter with double-digit growth in the United States, its biggest market, partially helping to offset a decline in China, ABB's second-largest market.
«Orders in China declined at a low single-digit comparable growth rate particularly hampered by weakness in robotics and construction demand,» Chief Executive Bjorn Rosengren said in a statement.
ABB said it anticipated low- to mid-single digit comparable revenue growth in the fourth quarter.
For the full year 2023, the group said it expected comparable revenue growth to be in the low double-digit percentage range, and an operational margin to be in the range of 16.5% to 17.0%.
Previously it had said it expected revenue growth of at least 10% and an operational margin above 16%.
The company is due to unveil new mid-term targets at its investor day on Nov. 30.
