ABB Ltd reported higher earnings and revenue in the first quarter, but stressed that cash flows fell more than expected, despite high prices offsetting higher inflation costs.
The Swiss industrial company reported net profits of $ 604 million in the quarter to the end of March, up from $ 502 million in the same period last year.
Orders rose 28% from 2021 to $ 9.37 billion, while revenue rose 7% to $ 6.97 billion, both on a comparable basis.
Estimates spoke of net profit of $ 562 million and revenue of $ 7.08 billion.
Operating EVITA increased to $ 997 million from $ 959 million the previous year.
However, the drop in cash flows to $ -573 million was higher than expected due to the increase in working capital to support outstanding order deliveries, the company said.
“Cashmaking will clearly be the focus in the future, and I expect a steady cash flow throughout the year,” said CEO Bjorn Rosengren.
However, higher volumes and stronger pricing offset the blows from inflation costs relative to raw materials, logistics and tight labor markets.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
