Zurich, Oct 20 (BUS): ABB reported better-than-expected core operating profit during the third quarter, as the engineering and technology company said it saw no changes in core customer activity, which remained at a high level.
The maker of control units, motors and electric ship motors said its core operating profit (EBITA) rose 27% on a similar basis to $1.23 billion, Reuters reported.
The figure exceeded expectations of $1.14 billion in a consensus compiled by the company.
However, net profit fell 45% to $360 million after the Swiss company was hit with $325 million in fees to cover costs related to investigations surrounding the Kozel power plant in South Africa, a charge it announced last month.
ABB’s operating profit margin increased 1.5 percentage points to 16.6%. Orders – a sign of future growth – increased 16% on a comparable basis, with all regions improving.
Revenue of $7.4 billion was in line with expectations, as ABB said components supply chain problems continued to subside while it saw fewer interruptions from COVID-related shutdowns in China.
“We delivered significant order growth, strong top line development, and historically high margins,” CEO Bjorn Rosengren said in a statement.
“We haven’t seen any material changes in core client activity. It looks like we’ll likely meet our 2023 margin target one year in advance.”
SM