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ABB - Abb News Story

$33.38 0.5  1.4%

Last Trade - 16/04/21

Sector
Industrials
Size
Large Cap
Market Cap £48.22bn
Enterprise Value £48.77bn
Revenue £18.96bn
Position in Universe 189th / 6851

UPDATE 1-ABB says market uncertainty rising as COVID-19 restrictions return

Thu 4th February, 2021 6:20am
(Adds detail, background, CEO comment)
    By John Revill
    ZURICH, Feb 4 (Reuters) - ABB  ABBN.S  saw improving market
conditions during its fourth quarter although uncertainties had
also increased with the reintroduction of COVID-19 restrictions
towards the end of last year, the engineering company said on
Thursday.
    Orders and revenues rose during the period, with ABB saying
it was seeing positive development in general industry and among
machine builders supplying sectors like construction,
distribution, consumer electronics, and food and beverage.
    But other areas like oil and gas, conventional power
generation and marine power remained subdued, ABB said.
    "In the fourth quarter, market conditions improved compared
to the third quarter," said Chief Executive Bjorn Rosengren.
"That said, some key end-markets remained challenging, input
costs rose, and uncertainty due to COVID-19 related restrictions
increased as the quarter progressed."
    The Swiss industrial company said fourth-quarter revenues
increased 2% to $7.18 billion, beating forecasts for $6.94
billion in a company-gathered consensus of analyst forecasts. 
    The maker of industrial robots and fast-charging stations
for electric vehicles said its operational earnings before
interest, tax and amortisation (EBITA) rose to $825 million,
beating forecasts for $768 million.
    But it reported a net loss of $79 million, missing analyst
expectations for a profit of $104 million, as it paid back bonds
early. Cash flow was also hit by a $115 million charge to settle
an investigation into improper payments surrounding a South
African power plant.  urn:newsml:reuters.com:*:nL1N2IR1AP
    ABB is a signifier for the health of the broader economy,
with companies ordering more drives and controllers when they
want to ramp up production.
    Its caution contrasted with the optimism at German rival
Siemens  SIEGn.DE , which on Wednesday raised its 2021 guidance,
citing a quicker-than forecast-rebound in the automotive and
machine-building sectors.  urn:newsml:reuters.com:*:nL8N2K914V

 (Reporting by John Revill; Editing by Michael Shields)
 ((John.Revill@thomsonreuters.com; +41 58306 7022; Reuters
Messaging: john.revill.thomsonreuters.com@reuters.net))
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