ABB Ltd., a leading Swiss technology group, has announced that its fourth-quarter and 2023 results met expectations and that it foresees another year of strong performance in 2024, despite ongoing geopolitical uncertainties.
In the fourth quarter, ABB recorded a net profit of $921 million, compared to $1.13 billion in the same period the previous year. Revenue also saw a significant increase, rising from $7.82 billion to $8.245 billion year over year.
While analysts had anticipated a net profit of $872 million on revenues of $8.10 billion, ABB's performance exceeded these expectations, with the company achieving a net profit of $921 million and revenue of $8.245 billion.
Moreover, ABB's operational earnings before interest, taxes, and amortization (EBITA) amounted to $1.33 billion in the fourth quarter, indicating growth from the previous year's $1.15 billion. Although slightly below analysts' estimated figure of $1.35 billion, this result still demonstrates ABB's strong performance.
Orders and Dividends
ABB's orders remained steady at $7.65 billion, maintaining the same level as the previous year.
As a testament to its success and commitment to shareholder value, ABB is proposing an ordinary dividend of CHF0.87 per share, up from CHF0.84. Additionally, the company plans to continue utilizing share buybacks to distribute excess cash to shareholders throughout 2024.
Looking ahead, ABB forecasts positive growth indicators for the coming year. The company expects a positive book-to-bill ratio, comparable revenue growth of approximately 5%, and a slight improvement in the operational EBITA margin from 17% in 2023.
Despite the geopolitical challenges currently affecting the global business landscape, ABB remains optimistic and committed to delivering strong results and value for its stakeholders.
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