ZURICH -Friday 23 October 2020 [ AETOS Wire ]
Strong underlying performance
Orders $6.1 billion, -9%; comparable -8%1
Revenues $6.6 billion, -4%; comparable -4%
Income from operations $71 million; margin 1.1%
Power Grids gain of $5.3 billion, pre-tax, recorded in discontinued operations
Operational EBITA1 $787 million; margin1 12.0%
Net income $4.5 billion, +780%, including Power Grids gain
Basic EPS $2.14, +785%2; operational EPS1 $0.21, -36%
Cash flow from operating activities $408 million, after $273 million negative impact from pensions; resilient cash delivery expected for the full year
(BUSINESS WIRE)-- “Third quarter revenues in all business areas were still dampened due to the impact of COVID-19, although a strong recovery in China and ongoing cost mitigation efforts supported a strong underlying performance. On the upside, the integration of GEIS and turnaround of Installation Products in Electrification is starting to bear fruit and Motion is performing robustly. Robotics and Industrial Automation, on the other hand, are taking more time to recover,” said Björn Rosengren, CEO of ABB. “We are pushing ahead with the decentralization of the group and the ongoing review of our portfolio, while carrying out our share buyback program as planned. We look forward to presenting further details on our strategic progress at our Capital Markets Day on November 19.”
KEY FIGURES
CHANGE
CHANGE
($ millions, unless otherwise indicated)
Q3 2020
Q3 2019
US$
Comparable
9M 2020
9M 2019
US$
Comparable
Orders
6,109
6,688
-9%
-8%
19,509
21,702
-10%
-7%
Revenues
6,582
6,892
-4%
-4%
18,952
20,910
-9%
-7%
Income from operations
71
577
-88%
1,015
1,290
-21%
Operational EBITA1
787
806
-2%
-5%3
2,074
2,397
-13%
-14%3
as % of operational revenues
12.0
11.7
+0.3 pts
10.9
11.5
-0.6 pts
Net income attributable to ABB
4,530
515
+780%
5,225
1,114
+369%
Basic EPS ($)
2.14
0.24
+785%2
2.45
0.52
+370%2
Operational EPS ($)1
0.21
0.33
-36%2
-35%2
0.73
0.97
-25%2
-24%2
Cash flow from operating activities4
408
670
-39%
511
414
+23%
Q3 2020 Group results
Summary
Trading conditions during the third quarter remained challenging, influenced by the ongoing COVID-19 pandemic. Demand decreased year-on-year in all regions despite a strong rebound in China, which drove improved order development, particularly in Robotics. Short-cycle product businesses developed positively, but this was outweighed by lower large orders and the ongoing pull-back of service activities. Operating margins for the group were weighed by non-core charges and a loss in Industrial Automation in relation to the Kusile project in South Africa. Excluding these effects, margins showed good underlying resilience, reflecting sustained cost mitigation in all business areas, and strong progress in Electrification with the integration of GEIS and turnaround of Installation Products. Motion maintained its track record of solid performance.
Orders
Orders were 9 percent lower (8 percent comparable) in the quarter compared to the prior year period. Foreign exchange translation effects had a neutral impact and portfolio changes a net negative impact of 1 percent. The order backlog was $13,878 million at the end of the quarter.
Regional overview
– Orders from Europe were 9 percent lower (10 percent comparable) with mixed results at the country level. Sweden, Norway and the Netherlands showed solid growth, while orders declined in most other countries including Switzerland, the UK, Italy and Spain, when compared to the prior year period. In Germany, orders were 11 percent lower (14 percent comparable).
– Orders from the Americas were 14 percent lower (11 percent comparable), with most countries reporting lower order levels. In the US, orders declined by 13 percent (12 percent comparable).
– In Asia, Middle East and Africa (AMEA), orders were 1 percent lower (2 percent comparable). Orders were materially lower in India, Japan and Singapore, while order developments in South Korea were robust. China’s growth was strong, with orders up 7 percent (8 percent comparable).
View source version on businesswire.com: https://www.businesswire.com/news/home/20201022006266/en/
Contacts
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
ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
Investor Relations
Phone: +41 43 317 71 11
Email: investor.relations@ch.abb.com
or
Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com
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