ABB sees robust activity as Q2 profit beats forecasts
ZURICH (Reuters) -ABB said customer activity remained “robust” during its second quarter as the Swiss engineering company on Thursday reported stronger than expected operating profit.
ABB, whose products range from electric motors for ships to industrial drives used in factories, reported core operating profit rising 25% to $1.43 billion, better than the $1.37 billion forecast by analysts.
Net income rose to $906 million, better than the $873 million expected by analysts polled in a consensus of company-gathered forecasts.
Revenue increased 14% to $8.16 billion, in line with forecasts, as the company worked through its large order book.
Although orders dipped on a reported basis, when currency movements and changes to ABB’s portfolio were taken into account, they were 2% higher.
“It was good to see that the customer activity remained robust throughout the period,” said Chief Executive Bjorn Rosengren in a statement.
ABB’s results are seen as a signifier for the health of the broader industrial economy with its motors, drives, controllers and electrification products used in transport systems and factories.
For the third quarter, ABB said it expects to increase its revenues by a low double digit percentage and raise its EBITA profit margin from the 16.6% level reported in Q3 2022.
(Reporting by John Revill, Editing by Friederike Heine)