ZURICH, Switzerland — Second-quarter highlights:
- Orders reflect challenging market dynamics (-4%)
- Continued revenue growth (+3%)
- Operational EBITA margin 11.7%, up 100 basis points, led by progress in Power Systems turnaround, cost and productivity measures
- 9% growth in operational earnings per share (constant currency)
- Financials impacted by currency translation due to strong appreciation of US dollar
- Steady execution of Next Level strategy supports results
“We continued to drive our Next Level strategy, generating higher revenue and operational earnings per share against significant market headwinds,” said CEO Ulrich Spiesshofer.
“As anticipated, our order development reflects a tougher market environment and weaker demand in oil and gas, China and the US compared to a strong second quarter last year,” he said. “Focusing on relentless execution and the turnaround in Power Systems, we expanded our operational EBITA margin, with improved profitability in three divisions. Increasing revenues towards the end of the quarter resulted in higher receivables and lower associated cash from operations. Targeted measures to increase productivity and simplify the organization are bearing fruit, resulting in increased customer engagement and additional cost savings.
“We expect continued hard-weather sailing but the execution of our Next Level strategy will enable us to stay on course,” Spiesshofer said. “We remain committed to driving profitable growth and sustainable value creation in line with our targets.”
The complete press release including the appendices is available here.
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