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ABB orders jump 40 per cent as data-centre demand surges

ABB’s third-quarter orders climbed to 12.055 billion dollars, with data-centre customers providing particularly strong demand. Revenue and operating earnings also grew, while basic earnings per share slipped. The Swiss electrification and automation group reported a book-to-bill ratio of 1.24 and continued incremental capacity expansion to meet demand.

Economics & Markets··Midday
Pale electrical switchgear and overhead busway beside rows of black data-centre cabinets in a brightly lit industrial hall.

Orders outpace revenue

ABB, the Swiss electrification and automation group, reported third-quarter orders of 12.055 billion dollars, up 40 per cent from a year earlier. Management reported triple-digit order growth from data-center customers. Orders rose strongly in two of its three business areas, with positive developments across most customer segments.[1], [2]

Revenue increased 14 per cent to 9.701 billion dollars. Orders exceeded revenue, taking the book-to-bill ratio to 1.24. Management continued to expand capacity incrementally, with capital expenditure running at around 1 billion dollars.[1]

Operating earnings and margins rise

Income from operations rose 15 per cent to 1.846 billion dollars, producing a margin of 19 per cent. Operational EBITA, the company’s earnings measure before interest, tax and specified amortization, increased 24 per cent to 2.026 billion dollars. Its margin expanded 160 basis points to 20.8 per cent.[1]

Cash flow improves as earnings per share slip

Basic earnings per share fell 2 per cent to 0.65 dollars. Management attributed higher net finance expenses mainly to the non-cash revaluation of a currency hedge linked to the announced Rotork acquisition. Operating cash flow reached 1.862 billion dollars. Free cash flow was 1.576 billion dollars for the quarter and 3.707 billion dollars for the first nine months.[1]

References

  1. News sourceABB / EQS NewsABB orders rise 40 per cent as it agrees Japanese joint venture↩1↩2↩3↩4
  2. News sourceInvesting.comABB orders jump 40 per cent as data-centre demand surges↩
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