ABB Raises Financial Targets as Company Focuses on Growth

By Pierre Bertrand

ABB has raised its financial targets as the Switzerland-based technology company said the majority of its divisions have progressed toward a so-called strategic growth mandate.

ABB on Thursday lifted its long-term comparable revenue growth target to between 5% and 7% percent through the economic cycle, up from between 3% and 5% previously.

ABB also raised its target for annual operational earnings before interest and taxes margin to between 16% and 19% percent, up from at least 15% previously.

"Achieving our previous margin target a year earlier than planned, and being a more agile unit with fast decision-making gives us the confidence to formulate stronger ambitions and lift our margin target," Chief Executive Bjorn Rosengren said.

ABB said that around 70% of its group revenue come from divisions that are growing, and Rosengren added that they are focused on "capturing the full potential" of the transition toward electrification, energy security, energy efficiency, automation and digitalization.

In addition, ABB said that it is aiming for five to 10 small to mid-size bolt-on acquisitions per year.

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

(END) Dow Jones Newswires

November 30, 2023 02:15 ET (07:15 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.