ZURICH (dpa-AFX) - Shares of ABB Ltd. were losing around 6 percent in the morning trading in Switzerland after the Swiss engineering company on Thursday reported weak orders in its second quarter, even as profit and revenues were higher on solid demand.
Looking ahead for the third quarter, the company projects sequentially higher growth rate in comparable revenues, and the operational EBITA mergin to be around 18.5 percent or slightly below.
Further, for fiscal 2024, ABB continues to expect comparable revenue growth to be about 5 percent, and operational EBITA margin to be about 18 percent.
Bjorn Rosengren, the retiring CEO of ABB, said, 'In the second quarter, demand was solid and the Operational EBITA margin reached the all-time-high level of 19 percent. I am confident that ABB will continue to deliver long-term shareholder value in line with its targets as Morten Wierod takes over as CEO next month.'
In its second quarter, net income attributable to the company climbed 21 percent to $1.10 billion from last year's $906 million.
Basic earnings per share were $0.59, up 22 percent from $0.49 last year.
Operational EBITA grew 10 percent from last year to $1.56 billion, and operational EBITA margin improved 1.5 percentage points to 19 percent from prior year's 17.5 percent, supported by both higher volumes and positive price impacts.
Revenues grew 1 percent to $8.24 billion from $8.16 billion a year earlier. Comparable revenue growth was 4 percent.
Orders, meanwhile, dropped 3 percent to $8.44 billion from prior year's $8.67 billion. Comparable orders were flat.
According to the company, strong order growth for both the Electrification and Process Automation business areas was offset by weakness primarily in the discrete automation-related Machine Automation division and in the E-mobility business.
In Switzerland, ABB shares were trading at 48.23 Swiss francs, down 5.8 percent.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News