Power grid sale inflated profits to $ 5.2 billion. Swiss electronics company expects clear margin growth in 2021.
In 2020, the Swiss electrical engineering group ABB posted the highest profit in the company's history. Thanks to the sale of the electricity network business, the Swiss group earned 5.2 billion dollars (around 4.3 billion euros) last year, a multiple of the previous year's figure of 1.4 billion, of course, analysts had expected a little more.
In contrast, the corona crisis left its mark on day-to-day business. Operating profit fell seven percent to $ 2.9 billion.
“With our clear strategy, our excellent technological basis and the strengthened financial profile, ABB is well positioned for 2021 and beyond,” said CEO Björn Rosengren on Thursday.
In the current year, Rosengren is expecting sales growth within the target range of three to five percent as well as clear increases in margins, thanks in part to increasing demand from the mechanical engineering sector. In the medium term, he is aiming for an operating margin of 13 to 16 percent. In 2020, as in the previous year, ABB achieved 11.1 percent.
The day before, Siemens' competitor raised its forecast for the current 2020/21 fiscal year. The turnover of the Munich technology group is to grow by up to ten percent, the net profit even by 20 to 30 percent to 5.0 to 5.5 billion euros.
At ABB, sales in 2020 fell seven percent to $ 26.1 billion. All four divisions implemented less. The robot division, which generates a large part of the business with the car manufacturers, showed the weakest development.
As announced, ABB has initiated the sale of three businesses. The business units turbocharger, current converter and mechanical power, which among other things manufactures drives for conveyor systems, together generate around six percent of the group's turnover.
