By Pierre Bertrand
ABB, the Switzerland-based technology company, has announced impressive financial results for the third quarter. The company's profit and revenue have shown significant growth, driven by favorable pricing and the conversion of its order backlog.
Robust Financial Performance
According to ABB's financial report, the company achieved a net profit of $882 million for the quarter, a substantial increase from $360 million in the same period last year. This improvement is primarily attributed to the resolution of a nonoperational provision related to the Kusile power-station project in South Africa.
The company's revenue also witnessed a commendable growth of 8% to reach $7.97 billion, exceeding market expectations. Analysts had anticipated a profit of $919 million and revenue of $8.1 billion for the quarter.
Order Backlog and Future Outlook
Although ABB experienced a slight decline of 2% in orders for the quarter, totaling $8.05 billion, the conversion of its existing order backlog played a crucial role in driving overall revenue growth.
Looking ahead, ABB has provided guidance for the fourth quarter, aiming to achieve low to mid single-digit comparable revenue growth. Additionally, the company anticipates an operational earnings before interest, taxes, and amortization (Ebita) margin of approximately 16%.
Revised Yearly Guidance
ABB has also revised its yearly guidance, raising the expectation for comparable revenue growth to the low teens, compared to the previous target of at least 10%. Furthermore, the operational Ebita margin is predicted to be between 16.5% and 17%, surpassing the previous estimate of above 16%.
These positive financial results and revised guidance reflect ABB's strong performance and confidence in its future prospects.