ABB: Q4 2022 Results
ABB reported a strong Q4 2022 with orders totaling
- Strong revenue growth of +3% in Q4 2022, +16% when adjusted for comparability.
- Operational EBITA margin improved to 14.8% in Q4, the highest in several years.
- Record Operational EBITA margin of 15.3% for FY 2022.
- Proposed dividend increase to CHF0.84 per share, up from CHF0.82.
- Orders fell by 8% YoY in Q4 2022.
- Income from operations decreased by 60% in Q4 2022 compared to Q4 2021.
- Cash flow from operating activities declined by 33% in Q4 2022.
Strong performance improvements in Q4 and long-term margin target achieved early
Q4 2022
-
Orders
, -$7.6 billion 8% ; comparable1 +2% -
Revenues
, +$7.8 billion 3% ; comparable +16% -
Income from operations
; margin$1,185 million 15.1% -
Operational EBITA1
; margin1$1,146 million 14.8% -
Basic EPS
$0.61 -
Cash flow from operating activities was
and from operating activities in continuing operations it was$687 million , including adverse impact of approximately$720 million due to earlier announced settlements for Kusile project.$315 million
FY 2022
-
Orders
, +$34.0 billion 7% ; comparable1 +16% -
Revenues
, +$29.4 billion 2% ; comparable +12% -
Income from operations
; margin$3,337 million 11.3% -
Operational EBITA1
; margin1$4,510 million 15.3% -
Basic EPS
$1.30 -
Cash flow from operating activities was
$1,287 million -
and from operating activities in continuing operations it was
$1,334 million
Ad hoc Announcement pursuant to Art. 53 Listing Rules of
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CHANGE |
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CHANGE |
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($ millions, unless otherwise indicated) |
Q4 2022 |
Q4 2021 |
US$ |
Comparable1 |
FY 2022 |
FY 2021 |
US$ |
Comparable1 |
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Orders |
7,620 |
8,257 |
- |
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33,988 |
31,868 |
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Revenues |
7,824 |
7,567 |
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29,446 |
28,945 |
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Gross Profit |
2,658 |
2,397 |
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9,710 |
9,467 |
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as % of revenues |
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+2.3 pts |
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+0.3 pts |
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Income from operations |
1,185 |
2,975 |
- |
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3,337 |
5,718 |
- |
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Operational EBITA1 |
1,146 |
988 |
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4,510 |
4,122 |
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as % of operational revenues1 |
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+1.7 pts |
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+1.1 pts |
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Income from continuing operations, net of tax |
1,168 |
2,703 |
- |
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2,637 |
4,730 |
- |
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Net income attributable to |
1,132 |
2,640 |
- |
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2,475 |
4,546 |
- |
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Basic earnings per share ($) |
0.61 |
1.34 |
- |
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1.30 |
2.27 |
- |
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Cash flow from operating activities4 |
687 |
1,020 |
- |
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1,287 |
3,330 |
- |
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Cash flow from operating activities in continuing operations |
720 |
1,033 |
- |
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1,334 |
3,338 |
- |
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1 For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q4 2022 Financial Information. |
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2 EPS growth rates are computed using unrounded amounts. 2021 numbers include the impact related to the divestment of Mechanical Power Transmission. |
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3 Constant currency (not adjusted for portfolio changes). |
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4 Amount represents total for both continuing and discontinued operations. |
“2022 was another successful year for
CEO summary
In the fourth quarter of 2022, we improved comparable orders and revenues, we increased our Operational EBITA by
Customer activity improved slightly or remained stable in most customer segments, except for declines related to residential construction and discrete manufacturing. The market outlook for discrete manufacturing remains solid, although the fourth quarter was adversely impacted by customers normalizing order patterns following a period of pre-ordering triggered by the long delivery lead times in a strained value chain. This weighed on order intake in Robotics & Discrete Automation, while the other three business areas remained stable or increased comparable orders. Revenues were strong and increased by
Our strong price execution combined with increased volumes supported the higher gross margin and drove the improvement of 170 basis points in the Operational EBITA margin to
Cash flow of
We remain committed to our plans to separately list our E-mobility business, subject to constructive market conditions. Meanwhile, we have closed by the end of January the pre-IPO private placement of approximately
Just after the close of the fourth quarter, we progressed with the final part of our announced divisional exits by signing an agreement to divest the
By partnering with the Swedish mining and smelting company Boliden to build a strategic co-operation to use low carbon footprint copper in our electromagnetic stirring (EMS) equipment and high-efficiency electric motors, we took another step towards our 2030 target of having a circular approach in at least 80 percent of our products and solutions. The aim is to reduce greenhouse gas (GHG) emissions while driving the transition to a more circular economy.
Looking into 2023, we currently do not anticipate a major set-back in demand, although the high inflationary environment adds uncertainty. Comparable order growth, at least in the first half of the year, should be somewhat hampered by last year’s very high order level coupled with a normalization of customers’ order pattern after a period of pre-ordering in times of a strained value chain. I expect comparable revenue growth to be above
Considering improving performance, robust cash flow and a solid balance sheet, the Board of Directors proposes an ordinary dividend of
CEO
Outlook
In the first quarter of 2023, we anticipate double-digit comparable revenue growth to support some improvement in the Operational EBITA margin, year-on-year.
In full-year 2023, despite current market uncertainty, we anticipate comparable revenue growth to be above
The complete press release including the appendices is available at www.abb.com/news.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230201005955/en/
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Media Relations
+41 43 317 71 11
media.relations@ch.abb.com
Investor Relations
+41 43 317 71 11
investor.relations@ch.abb.com
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