ABB - ABB fall 5% as Q4 profit dropped orders declined
ABB ( NYSE: ABB ) -4.9% pre-market Thursday after reporting a decline in Q4 net profit as orders fell 8% Y/Y.
The company said it earned $1.13B in net profit for the quarter compared with $2.64B in the year-earlier quarter, which reflected gains from the sale of its mechanical power transmission division, while revenues rose 3% Y/Y to $7.82B.
Analysts had forecast $718M in Q4 net profit and $7.63B in revenue, according to a company-compiled consensus.
Q4 operational EBITA increased 16% Y/Y to $1.15B, as ABB ( ABB ) said prices more than offset the impact of inflation in commodities, freight and labor.
Full-year operational EBITA margin was 15.3%, slightly above targeted margin of at least 15% by 2023.
"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," the company said.
ABB ( ABB ) also said it was continuing to streamline its portfolio, and its smart buildings unit will begin the process of shedding the emergency lighting business.
ABB ( ABB ) said it remains committed to an IPO for its e-mobility unit, which recently raised 525M Swiss francs (~$578M) in pre-IPO placements for 20% of the company.
ABB ( ABB ) shares have gained nearly 15% so far this year but only 5.5% during the past year .
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ABB fall 5% as Q4 profit dropped, orders declined