Q4 and full-year 2020 results
Zurich, Switzerland, February 4, 2021 - Solid end to challenging year
FOURTH QUARTER 2020 HIGHLIGHTS
- Orders $7.0 billion, +2%; comparable -1%1
- Revenues $7.2 billion, +2%; comparable 0%
- Income from operations $578 million; margin 8.0%
- Operational EBITA1 $825 million; margin1 11.5%, including a combined impact of 80 basis points from the full and final Kusile settlement with Eskom in South Africa and non-core business charges
- Basic EPS -$0.04; operational EPS1 $0.26, -6%
- Cash flow from operating activities $1,182 million; cash flow from continuing operating activities $1,225 million after negative impacts, combined, of ~$200 million for the Kusile settlement and pension plan transfers
FULL-YEAR 2020 HIGHLIGHTS
- Orders $26.5 billion, -7%; comparable -6%1
- Revenues $26.1 billion, -7%; comparable -5%
- Income from operations $1,593 million; margin 6.1%
- Operational EBITA1 $2,899 million; margin1 11.1%, including a combined impact of 90 basis points impact from the full and final Kusile settlement and non-core business charges, and 15 basis points impact from stranded costs
- Basic EPS $2.44, +261%2 including gain from Power Grids sale; operational EPS1 $0.98, -21%
- Cash flow from operating activities $1,693 million; cash flow from continuing operating activities $1,875 million after approximately $1 billion outflows, in total, for pension plan transfers, Power Grids carve-out and ABB-OS and other restructuring and project related items. Adjusted to exclude the above outflows, cash flow from continuing operating activities improved by close to $550 million year-on-year
- CHF 0.80 dividend per share proposed
“In the fourth quarter, market conditions improved compared to the third quarter. That said, some key end-markets remained challenging, input costs rose, and uncertainty due to COVID-19 related restrictions increased as the quarter progressed. Orders were broadly stable year-on-year, supported by large orders received from Industrial Automation’s marine business. Operating margins benefited from a strong performance by Electrification, as well as solid delivery from Motion.”
“2020 was an extraordinary year with market developments dominated by the challenges arising from the pandemic. I am thankful for the speed and dedication with which the ABB team implemented mitigation actions, always putting the health and safety of our employees and customers first. We have taken important steps in 2020 by launching the ABB Way decentralized operating model, our long-term sustainability strategy and have started the process to exit three divisions. With our clear strategy, excellent technology base and stronger financial position, ABB is well positioned for 2021 and beyond.” said Björn Rosengren, CEO of ABB.
The complete press release including the appendices is available at www.abb.com/news
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1 For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q4 2020 Financial Information.
2 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).
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 105,000 talented employees in over 100 countries.
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