- ABB (ABB -5.2%) reported Q4 revenue growth of ~2% Y/Y to $7.18B; and orders of $7B (+2% Y/Y). The book-to-bill ratio for the quarter was 0.98x.
- Revenue by segments: Electrification $3.36B (+4% Y/Y); Industrial Automation $1.55B (-8% Y/Y); Motion $1.71B (+3% Y/Y); and Robotics & Discrete Automation $801M (+2% Y/Y).
- Order developments Q4 were driven by good growth in short-cycle product areas, led by China; also significant large order wins in Industrial Automation were a highlight.
- Regional overview: Orders from Europe were 8% Y/Y lower (12% comparable); Orders from the Americas were 7% Y/Y lower (6% comparable); and in Asia, Middle East and Africa, orders rose 28% (23% comparable).
- Q4 Operational EBITA increased by 24% Y/Y to $522M; and margin expanded by 131 bps to 7.3%.
- Cash flow from continuing operating activities was $1.23B, down 16% as compared to $1.45B a year ago.
- For 1Q21 ABB envisages a return to positive year-on-year comparable order developments during the Q2 period. Comparable revenue growth is expected to prove resilient in the Q1. The operational EBITA margin for the group is expected to clearly improve year-on-year.
- For FY21 company expects comparable revenue growth to be broadly in line with its long-term target range and expects clear margin accretion for FY21 compared to FY20. ABB also expects strong EPS accretion and solid cash delivery for the year.
- Company's financial targets, as established at the November 2020 Capital Markets Day, remain unchanged.
- “The performance of ABB is remarkably sensitive to the underlying global economic growth and the status of the energy market, as many customers of ABB belong to the energy sector,” mentions SA contributor Aristofanis Papadatos, with Bearish rating.
- Previously (Feb. 4): ABB EPS beats by $0.06, beats on revenue.