ABB: Q1 2022 Results
ABB reported a strong first quarter despite external uncertainties. Orders rose to $9.4 billion, a 21% increase, while revenues reached $7.0 billion, up 1%. The company saw operational EBITA of $997 million with a margin of 14.3%. EPS grew by 25% to $0.31. However, cash flow from operations was negative at -$573 million, driven by increased working capital needs. The order backlog climbed to $18.9 billion, reflecting robust demand. ABB plans a continuation of share buybacks totaling $3 billion.
- Orders increased by 21% to $9.4 billion.
- Revenues rose 1% to $7.0 billion, with a 7% comparable increase.
- Operational EBITA reached $997 million, a margin of 14.3%.
- EPS grew by 25% to $0.31.
- Order backlog increased by 28% to $18.9 billion.
- Continuation of share buybacks of up to $3 billion.
- Cash flow from operating activities was negative at -$573 million.
- Operational disruptions due to geopolitical factors and local lockdowns in China could negatively impact future operations.
Solid performance in an uncertain environment
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Orders
, +$9.4 billion 21% ; comparable1 +28% -
Revenues
, +$7.0 billion 1% ; comparable +7% -
Income from operations
; margin$857 million 12.3% -
Operational EBITA1
; margin1$997 million 14.3% -
Basic EPS
;$0.31 25% 2 -
Cash flow from operating activities -
; cash flow from operating activities in continuing operations -$573 million $564 million
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CHANGE |
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($ millions, unless otherwise indicated) |
Q1 2022 |
Q1 2021 |
US$ |
Comparable1 |
Orders |
9,373 |
7,756 |
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Revenues |
6,965 |
6,901 |
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Gross Profit |
2,281 |
2,268 |
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as % of revenues |
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-0.2 pts |
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Income from operations |
857 |
797 |
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Operational EBITA1 |
997 |
959 |
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as % of operational revenues1 |
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+0.5 pts |
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Income from continuing operations, net of tax |
643 |
551 |
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Net income attributable to ABB |
604 |
502 |
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Basic earnings per share ($) |
0.31 |
0.25 |
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Cash flow from operating activities4 |
(573) |
543 |
n.a. |
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Cash flow from operating activities in continuing operations |
(564) |
523 |
n.a. |
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1. |
For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q1 2022 Financial Information. |
2. |
EPS growth rates are computed using unrounded amounts. |
3. |
Constant currency (not adjusted for portfolio changes). |
4. |
Amount represents total for both continuing and discontinued operations. |
“ABB has started the year with a promising performance in the face of multiple external uncertainties. I expect this year to result in improving profitability, solid cash flow and execution of our planned portfolio activities.”
CEO summary
In the first quarter, we witnessed the start of the war in
Customer activity was strong throughout the quarter, resulting in the very high order growth of
We saw an increase in revenues which improved by
In total, we achieved an Operational EBITA margin of
Cash flow from operating activities, amounted to
We made overall good progress towards our 2030 sustainability goals in 2021, as publicized in our Sustainability Report in March. As an example, we reduced our own CO2e emissions by
We made progress with the portfolio activities. We plan for an exit of the Turbocharging business, although the geo-political uncertainties caused us to delay the final decision on a spin-off or sale to the second quarter. Preparing for the separation, we launched the new company name and brand – Accelleron. For the E-mobility business, our plan for a separate listing during the second quarter remains intact, assuming constructive market conditions.
I look forward to the impacts of the leadership exchange in Electrification and Motion. I have great confidence in both Tarak and Morten and expect them to continue to improve operational performance for both growth and profitability. The change was effective as of
Finally, I am pleased we announced a continuation of share buybacks of up to
CEO
Outlook
In the second quarter of 2022, ABB anticipates the underlying market activity to remain broadly similar compared with the prior quarter. Revenues in the second quarter tend to be sequentially stronger in absolute terms, supporting a slight sequential margin increase, assuming no escalation of lock-downs in
In full-year 2022, we expect a steady margin improvement towards the 2023 target of at least
The complete press release including the appendices is available at www.abb.com/news.
ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries.
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Source: ABB
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