ABB sales, profit surge as industry turns to robots

Swiss industrial group ABB published better-than-expected second quarter results on Thursday, driven by a resumption of new orders — particularly for robots to automate production.

Its net profit rebounded 136 percent from the second quarter last year to $752 million (637 million euros) while revenue was up 21 percent to $7.4 billion, the company said in a statement.

New orders grew 32 percent year-on-year to $7.9 billion for the group which manufactures robots for industry and the automotive sector, as well as railway traction systems and charging stations for electric vehicles.

The robotics division recorded the strongest orders growth, up 41 percent excluding currency effects. Many companies have faced pandemic-related disruptions to workers and face difficulties hiring staff, making automation even more attractive to manufacturers.

ABB anticipates third quarter growth rates of around 10 percent, reflecting the low level of business activity in the same period last year.

The increase in demand should support the level operating profit despite the pressure of rising raw material costs and shortages of certain components.

“The tight supply of certain components, such as semiconductors, is expected to continue in the coming quarter,” said chief executive Bjorn Rosengren.

On Tuesday, the group announced the acquisition of Spanish robot manufacturer ASTI for an undisclosed sum, strengthening this field of activity which was at the heart of its second quarter growth.

“Going forward, I expect to see more of these small- to mid-sized bolt-on deals as the divisions fill up their target pipelines,” said Rosengren.

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