# ABB dispels industrial gloom to raise full-year outlook
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-04-25
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: ABB outlook brightens as profit beats forecasts
Meta Description: ABB Ltd boosts sales and profit forecasts after exceeding Q1 expectations amid concerns of subdued industrial demand. CEO optimistic about uptick in orders and
URL: https://financedigest.com/abb-dispels-industrial-gloom-to-raise-full-year-outlookhtml

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# ABB dispels industrial gloom to raise full-year outlook

By John Revill

ZURICH (Reuters) -ABB Ltd raised its full-year outlook for sales and profit outlook on Tuesday after the Swiss engineering and technology group reported first-quarter profit ahead of forecasts.

The maker of chargers for electric vehicles and factory robots has seen a strong start of the year, offsetting recent sector concerns about subdued demand, driven by rising interest rates – which undercut demand for goods – and buyer resistance to higher prices.

The JP Morgan [Global Manufacturing](https://www.financedigest.com/heightened-interest-in-global-cuisines-to-brighten-the-expansion-prospects-of-herbs-and-spices-manufacturers-industry-predicted-to-rise-at-3-6-cagr-future-market-insights-inc.html "Heightened Interest in Global Cuisines to Brighten the Expansion Prospects of Herbs and Spices Manufacturers: Industry Predicted to Rise at 3.6% CAGR | Future Market Insights Inc. ") Purchasing Managers Index dipped to 49.6 points in March, data showed earlier this month, the seventh successive month the forward-looking indicator has been below the no-change threshold of 50 points.

Production at U.S. factories fell more than expected in March, but eked out a modest gain in the first quarter, while [industrial activity](https://www.financedigest.com/automotive-active-safety-system-market-2015-scope-of-current-and-future-industry-2025.html "Automotive Active Safety System Market 2015 | Scope of Current and Future Industry 2025") in Japan and China also struggled.

Still, ABB CEO Bjorn Rosengren pointed to an uptick in orders, up 9% on a comparable basis, as a reason for optimism.

The company has also overcome supply chain bottlenecks, meaning it was able to work through its [order backlog to deliver](https://www.financedigest.com/just-eat-delivers-q3-profit-as-cost-cuts-outweigh-lower-order-volumes.html "Just Eat delivers Q3 profit as cost cuts outweigh lower order volumes") motors, drives and controllers to customers, he said.

ABB had a strong start to the year, with a positive development in most measures, including [cash flow,”](https://www.financedigest.com/xerox-shares-slide-as-annual-revenue-cash-flow-forecasts-take-a-hit.html "Xerox shares slide as annual revenue, cash flow forecasts take a hit") Rosengren said. This [gives us the confidence](https://www.financedigest.com/how-data-sharing-can-give-brands-confidence.html "How data sharing can give brands confidence") to raise our 2023 guidance.

ABB now [expects to increase its full-year](https://www.financedigest.com/puma-expects-q2-sales-growth-below-full-year-target.html "Puma expects Q2 sales growth below full-year target") revenue by at least 10% this year, up from its previous expectations for an above 5% growth, and hike its operational profit margin.

The upgrade came after the company increased net profit by 72% to $1.04 billion in the three-month period ended March, [beating forecasts for $877 million in a company-gathered consensus of analyst estimates](https://www.financedigest.com/recruiter-randstad-beats-q1-earnings-estimates-despite-hiring-slowdown.html "Recruiter Randstad beats Q1 earnings estimates despite hiring slowdown").

The figure was boosted by a $200 million tax gain from the sale of its [Power Grids](https://www.financedigest.com/first-winter-cold-snap-tests-french-power-grid.html "First winter cold snap tests French power grid") business.

Operational earnings before interest, tax and amortisation increased by 28% to $1.28 billion, [beating forecasts](https://www.financedigest.com/elevator-maker-kone-hikes-outlook-as-q1-profit-orders-beat-forecasts-2.html "Elevator maker Kone hikes outlook as Q1 profit, orders beat forecasts") for $1.15 billion. [Revenue also came in ahead of forecasts](https://www.financedigest.com/uv-disinfection-equipment-market-opportunities-demand-and-revenue-forecast-2025-tmr-study.html "UV Disinfection Equipment Market Opportunities, Demand and Revenue Forecast 2025 – TMR Study"), rising 13% to $7.86 billion.

(Reporting by John Revill, Editing by Sherry Jacob-Phillips and Rachel More)


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