ABB reported record full-year revenues and higher operational EBITDA, net income and free cash flow despite a challenging market environment. According to the a company press release, the firm’s board of directors has proposed a 2013 dividend increase to 0.70 CHF (Swiss Francs) per share (0.78 USD).
The company reported $41.85 billion in revenues for 2013, an increase from $39.34 billion in 2012. Its fourth quarter revenues were $11.37 billion, up from $11.02 billion during the same quarter in 2012. ABB’s operational EBITDA for 2013 was $1.42 billion compared to $1.37 billion in 2012.
“These solid results, delivered in a mixed business climate and despite the setback in Power Systems, show the strength of ABB and our global team,” said ABB’s CEO Ulrich Spiesshofer, in the press release
“Our expanded product and geographic scope enabled us to increase profitability in automation, while we continued to generate market-leading returns in power products,” Speisshofer continued. “We again demonstrated good execution on costs savings and strong cash performance, allowing us to return a higher dividend to shareholders for the fifth consecutive year.”
According to ABB, early-cycle demand continued to trend positively in the second half of 2013 but was offset by delayed large project awards, leading to a lower order backlog at the end of the year. Orders also declined due to the effects of increased order selectivity in the firm’s power systems division.
“For 2014 we have a clear action plan with a focus on organic growth, further cost savings, higher cash flow generation and more consistent returns in power systems,” Speisshofer said. “Our strong financial position gives us full flexibility to accomplish these goals, even in uncertain times. We are taking a systematic and robust approach to increasing shareholder value based on profitable growth, business-led collaboration and relentless execution.”Tagged with tED