ABB Still Planning E-Mobility IPO Despite Disappointing 2Q, CEO Says

By Pierre Bertrand

ABB has issues within its E-Mobility business that the group must fix after a "disappointing" second-quarter performance for the business relative to the rest of the group, Chief Executive Bjoern Rosengren said Thursday, noting that the company is still planning an initial public offering for the unit.

E-Mobility, in the second quarter, reported a 67 million-euro ($75.1 million) operating loss before interest, taxes and amortization after booking provisions related to inventories and technology investments, the Swiss industrial company said.

Rosengren, during a post-earnings call with analysts, said the provisions were also the result of the business's new management team working toward a more focused product strategy.

In spite of the result, the business grew well in the second quarter, Rosengren said.

Orders rose by 73%, an ABB spokesman said when approached by Dow Jones Newswires.

ABB, which had originally wanted to do an initial public offering of the business in the second quarter of last year, said its strategy to proceed with an IPO hasn't changed.

However, it doesn't see an IPO of the business taking place before the end of year, Rosengren said.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

July 20, 2023 08:07 ET (12:07 GMT)

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