Swiss Automation by ABBSwiss Automation by ABB
  • Swiss Automation Leader ABB Proposes Dividend Increase Amid Positive Outlook
  • Dividend Hike and Strong Earnings Signal Confidence

Zurich, Switzerland – ABB, the Swiss multinational corporation excelling in automation and electrification, has announced a proposal to increase its ordinary dividend to CHF 0.87 per share, marking a rise from the previous year’s CHF 0.84. This decision, made by the company’s Board of Directors, reflects ABB’s robust financial performance and a forward-looking stance, even amidst challenging global conditions.

Financial Highlights: Impressive Growth and Strategy

ABB’s financial resilience is evident in its significant Earnings Per Share (EPS) growth, with a more than 50% increase to $2.02 per stock. The company also remains committed to its shareholder-friendly policies, with plans to continue share buybacks as a means of distributing excess cash in 2024.

“Our strong 2023 delivery was the result of both our leading market position in electrification and automation, as well as ABB being a more agile and efficient company in its execution. With our upgraded financial and sustainability targets we look to the future with confidence.”
Björn Rosengren, ABB CEO on Thursday.

Forward Outlook: Steady Growth and Stability

For the first quarter of 2024, ABB projects a “low to mid-single digit comparable revenue growth” and anticipates the Operational EBITA margin to either maintain its current level or witness a slight year-on-year improvement. Looking at the broader picture for 2024, ABB expects a positive book-to-bill ratio, approximating a 5% growth in comparable revenues and a slight enhancement in the Operational EBITA margin from 2023’s figure of 16.9%.

Board of Directors: New Members Proposed

In a strategic move, ABB announced changes to its Board of Directors. Johan Forssell, President and CEO of Investor, and Mats Rahmström, President and CEO of Atlas Copco Group, are set to join the board, replacing outgoing members Jacob Wallenberg and Gunnar Brock. The upcoming Annual General Meeting in March 2024 will see these new proposals come to fruition. Remaining board members seeking re-election include Peter Voser, David Constable, Frederico Fleury Curado, Lars Förberg, Denise C. Johnson, Jennifer Xin-Zhe Li, Geraldine Matchett, and David Meline.

ABB: Leading the Charge in Swiss Automation

ABB’s strategic decisions, strong financial performance, and board restructuring underscore its leadership in the automation and electrification sectors. The company’s commitment to growth and shareholder value, coupled with a clear vision for the future, positions it as a key player in the global technology landscape.

Outlook:

  • For first quarter of 2024, ABB anticipate “a low to mid-single digit comparable revenue growth”
  • Operational EBITA margin to remain stable or slightly improve year-on-year.
  • For the full-year 2024, ABB expect a positive book-to-bill, comparable revenue growth to be about 5% and the Operational EBITA margin to slightly improve from the 2023 level of 16.9%.

By Lisa Luckas

Lisa Luckas is a Sr. Business News Editor at Nobot.News.

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