Q2 2020 results
Zurich, Switzerland, July 22, 2020 - Strong COVID-19 headwinds; Power Grids divestment completed
- Orders $6.1 billion, -18%; comparable -14%1
- Revenues $6.2 billion, -14%; comparable -10%
- Income from operations $571 million; margin 9.3%
- Operational EBITA1 $651 million; margin1 10.6%
- Net income $319 million, +398%2
- Basic EPS $0.15, +398%3; operational EPS1 $0.22, -35%
- Cash flow from operating activities $680 million; resilient cash delivery expected for the full year
- Power Grids divestment completed July 1
- Net cash proceeds to be returned to shareholders, as planned
“As expected, the second quarter has been heavily impacted by COVID-19. At the same time, we were very focused on cost mitigation efforts which provided some resilience. Operational margins for the Group turned out better than we had anticipated, with Motion doing particularly well,” said Björn Rosengren, CEO of ABB. “A lot of uncertainty remains and we still see some challenging quarters ahead. At the same time, our way forward is clear. We will continue to roll out our new operating model, review our business portfolio and start our share buyback program.”
The complete press release including the appendices is available at www.abb.com/news
ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 110,000 talented employees in over 100 countries. www.abb.com
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1 For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q2 2020 Financial Information.
2 The result benefited mainly from the absence of the charge booked in 2019 in relation to the sale of the solar inverters business.
3 EPS growth rates are computed using unrounded amounts. Comparable operational earnings per share is in constant currency (2019 exchange rates not adjusted for changes in the business portfolio).
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