ABB - ABB misses Q2 estimates but sees supply chain constraints easing

ABB ( NYSE: ABB ) +1.9% in Thursday's trading after Q2 GAAP earnings and revenues missed expectations, but orders rose despite supply chain constraints linked to China's strict COVID lockdowns.

The company's Q2 order intake totaled $8.8B, rising by 20% when stripping away the effect of currencies and business changes, while order backlogs during the quarter reached a record high $19.5B.

Q2 operating EBITA rose 2.1% Y/Y to $1.14B and edged $1.08B analyst consensus estimate, and operating EBITA margin rose to 15.5% from 15% in the year-earlier quarter and beat 14.5% consensus.

Q2 revenues rose at all business areas except robotics, where China's lockdowns and semiconductor shortages hampered deliveries.

"Negative impact from changes in exchange rates and portfolio changes outweighed the positives of strong price execution and increased volumes, with the latter somewhat held back by the strained supply chain," CEO Bjorn Rosengren said.

But ABB ( ABB ) expects supply constraints to ease in coming quarters , and it anticipates double-digit comparable revenue growth in Q3, with operational EBITA margin improving from Q2; the company also maintained its full-year guidance.

ABB ( ABB ) said earlier this week it plans to spin off its Accelleron turbocharging business with a listing on the SIX Swiss Exchange scheduled for October 3 .

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