ABB - ABB swings to Q4 profit but supply bottlenecks seen persisting

ABB -1.6% pre-market after reporting better than expected Q4 earnings with an 18% increase in orders, but results were held in check by ongoing disruptions in its supply chain. ABB swung to a Q4 net profit of $2.64B compared with a $79M net loss in the prior-year period, largely due to a $2.2B gain on the sale of its Dodge mechanical power transmission division that closed during the quarter. Q4 operating EBITA increased 20% Y/Y to $988M, slightly above $983M analyst consensus, with EBITA margin rising to 13.1% on revenues that rose 5% to $7.57B. The company said Q1 2022 revenue could decline Q/Q, and guidance for "flat or slightly increasing" EBITDA margin may disappoint, as consensus was looking for a 180-basis point improvement, RBC Capital said, according to Bloomberg. ABB CEO Bjorn Rosengren said shortages of components would remain early in 2022, but the company would benefit from its $16.6B

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ABB swings to Q4 profit but supply bottlenecks seen persisting