After the cold winter, ABB’s profit in the third quarter rose by 18%
recently,Industrial robotABB, one of the “Four Major Families”, released its financial report for the third quarter of 2022. During the reporting period, it achieved strong order growth, sales revenue growth, and operating profit margins before interest, tax and amortization hit a record high. Specifically:
Orders of $8.2 billion increased 4% year-over-year and 16% on a comparable basis
Sales revenue was $7.4 billion, an increase of 5% year-over-year and an increase of 18% on a comparable basis
Operating profit was $708 million, a 9.6% margin
Operating EBITDA of $1.231 billion, a margin of 16.6%
Basic EPS of $0.19, down 41%
Cash flow from operating activities was $791 million
Robbion, CEO of ABB Group, said: “In the third quarter, our order intake achieved high growth, sales revenue increased strongly, and profit margins hit a record high. We see no major changes in underlying customer demand and the 2023 profit margin target is very strong. Possibly a year ahead of schedule, the true value of the ABB Way operating model is beginning to emerge.”
Looking at the robotics and discrete automation business specifically, in the third quarter of 2022, sales revenue was $828 million, an increase of 2% (comparable growth of 13%), and operating EBITDA was $106 million, an increase of 18% year-on-year. The decline in the first half of the year has improved a lot.
Orders for the third quarter totaled $901 million, a decrease of 4% in total (up 7% on a comparable basis), primarily due to changes in exchange rates; backlog of $2,659 million, up 64% (up 87% on a comparable basis), by Order backlog remained stable at a book-to-bill ratio of 109%.
ABB said that market demand was at a high level this quarter. As supply chain constraints eased, the expected delivery cycle shortened and customer order patterns became normalized. However, there were also some signs that although the opportunity channel remained strong, Lead times for customer order decisions have also been extended.
In terms of order growth, orders were particularly strong, mainly in the machinery manufacturing sector, while electronics also improved, which offset a decline in demand for Robots in the automotive and general industries, which are now orders after a very strong first half. The pattern returned to normal.
Regionally, order book growth in the Americas was up 11% (up 11% on a comparable basis), while currency changes in Europe reduced order books by 1% (up 17% on a comparable basis) and Asia, the Middle East and Africa were down 13% (up 11% on a comparable basis). 7%), China fell by 9% (comparable 4%).
In the third quarter, ABB’s robot manufacturing base in Shanghai, China has been fully operational, and the demand in the Chinese market will be supplied by the Shanghai plant, which will effectively solve the problem of long supply cycles caused by logistics. It is understood that the final production capacity of ABB’s Shanghai plant can be Up to 100,000 units per year, enough to supply the Chinese market.
In terms of revenue growth, the main reason is that the exchange rate changes dragged down the overall revenue. Compared with the first half of the year, the supply of semiconductors improved in the third quarter, and orders were delivered in time. At the same time, the additional support brought by the adjustment of the sales price of robots promoted the quarterly revenue. growth of.
In profit growth, after three quarters of single-digit growth, operating EIT Profit margins returned to double-digit levels at 12.8%.
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