Still, ABB CEO Bjorn Rosengren pointed to an uptick in
orders, up 9% on a comparable basis, as a reason for optimism.
The company has also overcome supply chain bottlenecks,
meaning it was able to work through its order backlog to deliver
motors, drives and controllers to customers, he said.
"ABB had a strong start to the year, with a positive
development in most measures, including cash flow," Rosengren
said. "This gives us the confidence to raise our 2023 guidance."
ABB now expects to increase its full-year revenue by at
least 10% this year, up from its previous expectations for an
above 5% growth, and hike its operational profit margin.
The upgrade came after the company increased net profit
by 72% to $1.04 billion in the three-month period ended March,
beating forecasts for $877 million in a company-gathered
consensus of analyst estimates.
The figure was boosted by a $200 million tax gain from
the sale of its Power Grids business.
Operational earnings before interest, tax and amortisation
increased by 28% to $1.28 billion, beating forecasts for $1.15
billion. Revenue also came in ahead of forecasts, rising 13% to
$7.86 billion.
(Reporting by John Revill, Editing by Sherry Jacob-Phillips and
Rachel More)
(Adds details, CEO comment, background)
By John Revill
ZURICH, April 25 (Reuters) - ABB Ltd raised its
full-year outlook for sales and profit outlook on Tuesday after
the Swiss engineering and technology group reported
first-quarter profit ahead of forecasts.
The maker of chargers for electric vehicles and factory
robots has seen a strong start of the year, offsetting recent
sector concerns about subdued demand, driven by rising interest
rates - which undercut demand for goods - and buyer resistance
to higher prices.
The JP Morgan Global Manufacturing Purchasing Managers
Index dipped to 49.6 points in March, data showed earlier this
month, the seventh successive month the forward-looking
indicator has been below the no-change threshold of 50 points.
Production at U.S. factories fell more than expected in
March, but eked out a modest gain in the first quarter, while
industrial activity in Japan and China also struggled.
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