The maker of industrial drives and motors posted a 13% increase in its operational earnings before interest, tax and amortisation (EBITA) to $1.392 billion during the three months to Sept. 30, broadly in line with a company-gathered consensus of forecasts.
Revenues at the company, which competes with Germany’s Siemens and France’s Schneider Electric rose 8% on a comparable basis to $8 billion, slightly below analysts’ forecast for $8.1 billion.
ABB said it anticipated low- to mid-single digit comparable revenue growth in the fourth quarter after reporting a comparable 11% increase in the third quarter.
ABB shares were down over 6% in early morning trading.
The group, a big supplier to industry, is seen as a bellwether for the broader global economy, with its products being used in ships, ports, factories and transport systems.
The group said its order intake fell 2% during the quarter with double-digit growth in the United States, its biggest market, and growth in India and elsewhere in Asia partially helping to offset a decline in China, ABB’s second-largest market, as well as in Europe. “Orders in China declined at a low single-digit comparable growth rate particularly hampered by weakness in robotics and construction demand,” said Chief Executive Bjorn Rosengren in a statement.
He said orders in Europe declined because of a softening of the underlying market, accentuated by a high comparable last year due to timing of larger orders booked.
For the full year 2023, the group said it expected comparable revenue growth to be in the low double-digit percentage range, and an operational margin to be in the range of 16.5% to 17.0%.
Previously it had said it expected revenue growth of at least 10% and an operational margin above 16%.
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