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ABB releases 4Q16 results

Published by , Assistant Editor
World Cement,

ABB has announced its 4Q16 and FY16 results, highlighting the company’s growth and solid transformation progress.

Fourth quarter highlights

  • 3% orders growth driven by large contract awards.
  • 9% orders growth in the United States and China.
  • Revenues up 1%.
  • Power Grids strong growth in orders (up 15%) and revenues (up 4%); Op EBITA margin increased to 10.4%.
  • Operational EBITA margin 11.7% impacted by default of a large distributor in Turkey and Egyptian currency losses.
  • Net Income US$489 million versus US$204 million in 4Q15.

Full year 2016 highlights

  • Operational EBITA margin up 50 bps to 12.4%.
  • Operational earnings per share up 4%.
  • Orders -5% and revenues -1%.
  • Successful launch of ABB AbilityTM – integrating and expanding digital offering.
  • Cash return on invested capital up 70 bps to 14.1%; free cash flow up 5%.
  • Cost savings and working capital programmes progressing.
  • 8th consecutive dividend increase to CHF0.76 per share proposed.

“We delivered growth in the fourth quarter, driven by the strong performance of Power Grids, in a continued tough market,” said CEO Ulrich Spiesshofer. “Our customers are excited about ABB Ability, which bundles our leading offering as a digital champion in our industry. With the related orders already received, and significant interest, we are building growth momentum as we implement Next Level Stage 3,” he said. “The underlying performance improvement momentum continued and was stronger than the numbers we are reporting if you consider the one-off events that impacted us during the quarter.”

In 2016, we made significant progress transforming ABB into a more customer focused, leaner, digital technology leader,” Spiesshofer said. “We delivered margin accretion through our continued focus on productivity and cost. Our working capital program, strong cash generation and disciplined capital allocation reflect the new cash culture of ABB. We are delivering on our commitment to attractive shareholder returns.”

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