Q2 2024 Abb Ltd Earnings Call Transcript
Key Points
- ABB Ltd (ABBNY) achieved a record high operational EBITDA margin of 19%, driven by strong performance in three out of four business areas.
- The company saw growth in short-cycle orders, particularly in Electrification and Motion, which compensated for lower bookings in large orders.
- ABB Ltd (ABBNY) launched the new OmniCore controller for robotics, which operates 25% faster and consumes 20% less energy.
- The company continues to invest in technology start-ups, including AI-based clean tech companies in the smart building division.
- Operational EBITDA was up 10% year-over-year, with a margin increase of 150 basis points, reaching an all-time high of 19%.
- The market for machine automation is weaker than anticipated, impacting the Robotics & Discrete Automation segment.
- Performance in the e-mobility business was weak, with customers holding off on investments, particularly in Europe.
- China experienced a year-over-year decline in orders, particularly in Process Automation and residential buildings.
- The company faced impairments of $48 million in the e-mobility business, elevating the total quarterly loss in this segment to $87 million.
- Machine Automation division is facing a challenging market environment, with customers holding back on new orders, leading to a decline in revenues and margins.
Presentation, where we will talk through ABB's results for the second quarter. I'm Ann-Sofie Nordh, Head of Investor Relations. And next to me here today is our CFO, Timo Ihamuotila, and for the last time also our CEO, Björn Rosengren. They will take you through the presentation, after which we as usual open up for the Q&A session.
Before we begin, though, I should mention the information regarding safe harbor notices and our use of non-GAAP measures on slide 2, and this call includes forward-looking statements, which are subject to risks and uncertainties. And with that said.
Thank you, Anssi, and a warm welcome from me as well. Let's start on slide 3 with the summary. The quarter developed pretty much as planned, except for a couple of areas. First, the record high operational EBITDA margin of 19% is better than we originally expected. This was driven by strong performance in three out of
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