Latest news with #ABBLtd
Mint
8 hours ago
- Business
- Mint
The Trump effect: ABB sees companies extending clean energy transition targets as a new reality sets in
Swedish-Swiss engineering giant ABB Ltd sees firms across the world move to more realistic targets across sectors for transition to cleaner energy technologies amid sentiments changing globally post Donald Trump's return as US president earlier this year. The company, which is the largest electrical equipment manufacturer in India by market capitalization, sees timelines of transition shifting ahead due to the realisation that the previously set targets were unrealistic, as per a senior company executive. 'I think we were kind of as a global society, a little unrealistic in how fast that transition is going to happen,' said Brandon Spencer, president of ABB's motion business and a member of its group executive committee. Unlike previous transitions where the world moved towards cheaper sources, Spencer argued that this transition is happening because it's good for the planet. 'We see timelines pushed to the right now. I think it has come back to more realism than maybe over optimism,' Spencer said. The expected shift in timelines come amid cuts in climate spending in the world's largest economy. In a recent spending bill introduced and passed by the US Congress, tax credits for low carbon emission sources were eliminated. Moreover, the bill promoted by the Trump administration also cut incentives for electric vehicles. This came months after the US pulled out of the Paris Climate Agreement. Spencer is not alone in seeing climate transition timelines changing. Jérôme Sevin, partner and global lead for energy and process industry at consulting firm Kearney, earlier told Mint in an interview that progress on energy transition will be delayed due to Trump's push for oil and gas production. The US and Europe have targets to turn carbon neutral by 2050. India has set a target of 2070 to turn carbon neutral. Although the wind is changing in the global markets, players like ABB do not see any impact on its business. 'For the motion business in ABB, we supply to every single one of those industries. So, for us and with the diversity that we have, it doesn't matter which one of those is a winner or not, because every single one of them needs motors, drives, generators in order to power that industry forward,' Spencer said. ABB's motion business is mainly in the business of making industrial motors used in powering machinery and equipment at industrial plants. It has four manufacturing units in India and its major customers in the country include Tata Steel Ltd, Witt India, ArcelorMittal, and JSW Steel. In 2024, ABB's motion business posted a revenue of ₹ 4,287 crore in India, up from ₹ 3,785 crore in the year before. Spencer explained that the key point in ABB's pitch has to be the fact that its solutions are not only more sustainable but also the fact that they lead to considerable cost savings. 'We just sold a synchronous motor that's going on a compressor for an Indian steel application. And it's 99.13% efficient, which is leading to $6 million in electricity cost savings across its lifetime,' he said. Another headwind for companies across the world has been the looming threat of the Trump administration's decision to impose reciprocal tariffs across the world. ABB, which works with companies such as INOX, Sulzer, and Ingersoll Rand that export from the Indian market to the US and West Asia, expects its local-for-local strategy will help. About 10% of ABB's total ₹ 12,188 crore revenue came from exports in the Indian market. The company does not disclose how much it exported from its motion business. But its investor presentation post the announcement of financial year 2024 results on 9 May suggested that tariff barriers will remain a challenge to watch out due to its impact on supply chains. 'Our strategy hasn't changed just because the current wind has changed. You know our strategy needs to be more robust than that short of a cycle,' Spencer said. 'We will take care of the local market for growth, but if we can export from here, there is a competitive advantage; we will do that and we will do it wherever it can make sense.'
Bloomberg
12-05-2025
- Business
- Bloomberg
ABB Weighs Sale of Robotics Arm as Alternative to Spinoff
ABB Ltd. is exploring a potential sale of the robotics unit, which could be worth more than $3.5 billion, as an alternative to the main spinoff plan, according to people familiar with the matter. The Swiss industrial giant is close to appointing advisers for a sale as well as the listing, which it announced last month, the people said, asking not to be identified because the talks are private.
Yahoo
19-04-2025
- Business
- Yahoo
ABB Ltd Just Beat EPS By 18%: Here's What Analysts Think Will Happen Next
It's been a good week for ABB Ltd (VTX:ABBN) shareholders, because the company has just released its latest first-quarter results, and the shares gained 4.8% to CHF42.20. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$7.9b, statutory earnings beat expectations by a notable 18%, coming in at US$0.60 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Taking into account the latest results, the current consensus from ABB's 24 analysts is for revenues of US$34.6b in 2025. This would reflect a modest 5.0% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 6.3% to US$2.40. In the lead-up to this report, the analysts had been modelling revenues of US$34.4b and earnings per share (EPS) of US$2.38 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results. See our latest analysis for ABB The analysts reconfirmed their price target of CHF47.03, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic ABB analyst has a price target of CHF59.30 per share, while the most pessimistic values it at CHF34.02. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that ABB's rate of growth is expected to accelerate meaningfully, with the forecast 6.8% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ABB is expected to grow much faster than its industry. The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that in mind, we wouldn't be too quick to come to a conclusion on ABB. Long-term earnings power is much more important than next year's profits. We have forecasts for ABB going out to 2027, and you can see them free on our platform here. You can also view our analysis of ABB's balance sheet, and whether we think ABB is carrying too much debt, for free on our platform here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
17-04-2025
- Business
- Yahoo
ABB: Q1 Earnings Snapshot
ZURICH (AP) — ZURICH (AP) — ABB Ltd. (ABBNY) on Thursday reported first-quarter net income of $1.1 billion. The Zurich-based company said it had net income of 60 cents per share. The industrial automation company posted revenue of $7.94 billion in the period. ABB shares have declined 6% since the beginning of the year. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on ABBNY at Sign in to access your portfolio
Washington Post
17-04-2025
- Business
- Washington Post
ABB: Q1 Earnings Snapshot
ZURICH — ZURICH — ABB Ltd. (ABBNY) on Thursday reported first-quarter net income of $1.1 billion. The Zurich-based company said it had net income of 60 cents per share. The industrial automation company posted revenue of $7.94 billion in the period. ABB shares have declined 6% since the beginning of the year.
