ABB anticipates comparable revenue growth of 6-8% for full-year 2021

Oil&Gas Materials 25 October 2021 12:34 (UTC +04:00)

BAKU, Azerbaijan, Oct.25

By Leman Zeynalova – Trend:

In the fourth quarter of 2021, ABB anticipates a continued tight supply chain to impact customer deliveries, Trend reports with reference to the company.

ABB is a Swedish–Swiss multinational corporation headquartered in Zürich, Switzerland, operating mainly in robotics, power, heavy electrical equipment, and automation technology areas.

Comparable revenue growth is estimated to be broadly similar to the third quarter. In line with recent historical pattern, the Operational EBITA margin in the fourth quarter is expected to decline, sequentially. ABB anticipates comparable revenue growth of 6-8 percent (update from just below 10 percent) for full-year 2021, hampered by supply constraints towards the end of the year. In 2021, ABB expects a strong pace of improvement from 2020 toward the 2023 operational EBITA margin target of the upper half of the 13-16 percent range.

Demand was strong in the third quarter, with order intake amounting to $7,866 million, corresponding to a year-on-year increase of 29 percent (26 percent comparable) with virtually all divisions growing at a double-digit pace. The strength was broad based, supported by both short-cycle product and the process-related businesses. Service orders increased by 20 percent (18 percent comparable). Orders grew strongly in the machine builders and food & beverage segments as well as in general industries overall. Orders in the automotive segment increased, driven primarily by high customer activity in China. In transport and infrastructure, there was a very strong order development across the renewables and e-mobility segments as well as in the buildings segment with a positive development for both the residential and nonresidential segments. The marine segment recovered, including a slight positive development in the cruise segment with customers initiating service spend in anticipation of upcoming cruising activities.

The process-related business improved across the customer segments, including in the oil & gas segment as gas-related activity remained stable at a high level and oilrelated demand improved. Process Automation secured a large order amounting to approximately $120 million to power the Jansz-Io Compression project in Australia. Customer activity in power generation remained stable.


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