ZURICH (Reuters) – ABB expects to increase its 2024 sales by around 5%, the Swiss engineering company said on Thursday, despite seeing geopolitical uncertainties in the year ahead.
The maker of industrial robots, motors and factory drives, said its sales increased to $8.25 billion in the three months to the end of December, beating analyst forecasts for $8.10 billion.
Core operating profit (EBITA) increased 16% to $1.33 billion, roughly in line with forecasts for $1.35 billion in a company gathered consensus.
Looking ahead, ABB said it expected to increase its sales by about 5% in 2024 – when currency effects and acquisitions were removed, as well as improve its profit margin from the 16.9% level last year.
“Looking to 2024, the geopolitical situation adds uncertainty, however we currently expect another year of good performance,” said Chief Executive Bjorn Rosengren in a statement.
The executive said he was confident about taking on more orders in 2024, while the company also worked through its order backlog which now stands at $21.6 billion.
As a big supplier to factories and transport infrastructure, ABB’s results are seen as a signifier for the health of the broader global economy.
The International Monetary Fund earlier this week edged its forecast for global economic growth higher, upgrading the outlook for both the United States and China – the world’s two largest economies – and citing faster-than-expected easing of inflation.
Orders at ABB are an indication of future growth.
During its fourth quarter, ABB said it saw strong improvement in new business in the United States balanced by a flat development in Asia and a decline in Europe.
ABB said new business from the automotive industry fell, as did new demand from general industry and machine builders.
Still, there was more demand from the transport industry, particularly ports, marine and renewable energy sectors, as well as from oil and gas customers, the company said.
(Reporting by John Revill, editing by Kirsti Knolle and Michael Perry)
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