ABB raises 2021 guidance as customers rebuild inventories

Collaborative dual-arm robot YuMi is pictured at the Swiss automation group ABB booth at the Hannover Messe industrial trade fair in Hanover, central Germany. | PC-AFP

ABB raised its full year sales outlook on Thursday, saying it expects to increase its revenues by around 5% or more on a like-for-like basis, citing a strong demand especially towards the end of March.

The maker of industrial robots, drives and motors, said its first quarter revenues had risen by 11% to $6.90 billion from $6.22 billion a year earlier, as customers rebuilt their inventories and customers in the commodities sectors reinvested in equipment.

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On a like-for-like basis, which excludes the impact of currency swings, ABB's revenues increased by 7%. The company had previously guided for a full year increase in line with its long term goal of a 3% to 5% increase.

The engineering company also reported first quarter orders rising 1% to $7.75 billion, while its operational profit margin (EBITA) increased to 13.5% from 10.2% a year earlier.

"Quarterly demand is likely to have been supported by customer stock-building activities related to both component availability constraints and rising commodity prices in the industry," ABB said.

ABB said it expects a recovery in the process industries, which include oil and gas, in the second half of the year. The company is due to report its first quarter figures on April 27.