Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

ABB hikes sales outlook, readies electric charger business IPO

Stock MarketsJul 22, 2021 06:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of Hitachi ABB is seen at an office building in Zurich, Switzerland September 10, 2020. REUTERS/Arnd Wiegmann

By John Revill

ZURICH (Reuters) -Engineering company ABB doubled its full year sales guidance on Thursday thanks to resurgent global industrial demand and said it is forging ahead with plans to float its fast growing electric vehicle charging business next year.

The factory drives and robot maker reported better than expected second quarter results and said double-digit order growth was seen in all its business areas as customers rebuilt their inventories.

Sales of its high-speed electric vehicle chargers for buses and cars have seen an average growth rate of 50% since 2016, benefiting from a global boom in battery-powered vehicles.

Chief Executive Bjorn Rosengren said the business could be listed early next year to help accelerate its growth.

"Demand is enormous and we don't expect it to go down," Rosengren said, adding that orders had more than doubled in the first half of 2021.

The potential IPO is the latest stage of the reorganisation Rosengren has undertaken at ABB since taking charge in March last year.

The former Sandvik boss's overhaul has been welcomed by investors, with ABB's stock gaining 1.8% on Thursday to reach its highest level since November 2007.

ABB plans to keep a stake in the electro-charging business- a similar strategy to German rival Siemens when it spun off its medical equipment business Healthineers.

Rosengren said ABB would likely keep a controlling stake and would be ready to engage with investors during the fourth quarter, with a potential IPO pencilled in for early next year.

A separately listed electric vehicle charging business would probably have a higher valuation multiple than ABB itself, Rosengren said, which could help it with acquisitions of both software and hardware companies and attract capital for quick growth.

Reuters has reported the business, which had sales of $220 million in 2020, could achieve a valuation at about $3 billion in a float.

To boost electric vehicle sales, Brussels earlier this month proposed legislation that would require countries to install public charging points no more than 60 kilometres (37.3 miles) apart on major roads by 2025.

Updating investors on the rest of ABB's divestment plans, Rosengren said an announcement on the sale of its Dodge clutch and transmission business would be made in the next few weeks.

The company's turbocharging business, also slated for exit, could be spun off in the second quarter of 2022, the CEO said.

Announcing its second quarter 2021 earnings, ABB said its revenues rose 21% from 2020's coronavirus driven nadir to reach $7.45 billion, beating estimates of $7.24 billion. Net profit rose 136% to $752 million.

ABB now expects full-year comparable revenues to rise by just below 10%, above its previous view for a 5% increase.

ABB hikes sales outlook, readies electric charger business IPO
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email