Q2 2019 results

Continued growth despite market headwinds; transformation progressing

(PresseBox) ( Zurich, )

Total orders +1%[1], order backlog +7%
Revenues +2%, book-to-bill[2] 1.03x
Operational EBITA margin[2] 11.5%, impacted 60 basis points by GEIS dilution and additional 90 basis points by stranded costs
Net income $64 million, includes $455 million charge related to planned exit of solar inverter business
Operational EPS[2] $0.34, -10%[3]
Cash flow from operating activities zero, solid cash delivery expected for the full year
Announced sale of solar inverter business to streamline portfolio

“ABB continued to generate top-line momentum during the second quarter despite macroeconomic headwinds and geopolitical uncertainty,” said Peter Voser, Chairman and CEO of ABB. “Going forward we will drive long-term growth across our businesses, while staying focused on costs and portfolio management. We are instilling a new culture of empowerment to build ABB into a stronger and more agile group.”

“Overall total orders and revenues continued to grow, led by Electrification and Motion while Robotics and Discrete Automation in particular felt the downturn in automotive and machine building,” said Timo Ihamuotila, CFO of ABB. “At the same time, we are making good progress with the carve-out of our Power Grids business, the integration of GEIS and the roll-out of our ABB-OS operating model, which all are planned to make ABB more profitable.”

The complete press release including the appendices is available at www.abb.com/news  

[1] Growth rates for orders, order backlog and revenues are on a comparable basis (local currency adjusted for acquisitions and divestitures).

[2] For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q2 2019 Financial Information

[3] EPS growth rates are computed using unrounded amounts. Comparable operational earnings per share is in constant currency (2014 exchange rates not adjusted for changes in the business portfolio).
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