ZURICH (dpa-AFX) - Shares of ABB Ltd. were gaining around 8 percent in the morning trading in Switzerland after the Swiss technology company on Thursday issued positive third-quarter comparable revenue outlook and maintained fiscal 2025 growth view, after reporting strong second-quarter results and order growth.
CEO Morten Wierod said, 'ABB delivered an all-time-high order intake and improved operational performance. We are on a good path towards a new record year, amidst geopolitical uncertainties.'
Looking ahead to the third quarter, the company projects comparable revenue growth to be at least in the mid-single digit range, and the Operational EBITA margin to remain broadly stable year-on-year, amid the uncertainty for the global business environment.
For fiscal 2025, ABB continues to expect a positive book-to-bill, comparable revenue growth in the mid-single digit range and the Operational EBITA margin to improve year-on-year.
In its second quarter, net income attributable to ABB was $1.15 billion, up 5 percent from last year's $1.10 billion. Basic earnings per share grew 6 percent to $0.63 from $0.59 last year.
Operational EBITA was up by 9 percent from the prior year to $1.71 billion, and the margin improved 20 basis points to 19.2 percent, a bit better than originally expected.
The company noted that margins increased in both the Electrification and Process Automation business areas, and Motion remained virtually stable.
Revenues grew 8 percent to $8.90 billion from last year's $8.24 billion, supported by three out of four business areas. Comparable revenue growth was 6 percent.
In the Robotics & Discrete Automation segment, revenues were hit by weakness in the Machine Automation division where last year's comparable was supported by a stronger order backlog.
The company added that higher volumes was the main driver of the revenue growth, supported by slightly positive pricing.
Orders were $9.79 billion in the quarter, up 16 percent from prior year's $8.44 billion. Orders grew 14 percent on a comparable basis.
Order growth was especially strong in the Process Automation business area where a large order of approximately $600 million net was booked.
In the Americas orders were up by 27%, and orders in Europe grew 12%. Asia, Middle East and Africa improved by 7% including a positive development of 4% in China.
In Switzerland, ABB shares were trading at 51.08 Swiss francs, up 7.74 percent.
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