Summary of ABB's Q3 2024 Results

Summary of ABB's Q3 2024 Results: - **Order Value**: It was $8.193 billion, a 2% year-on-year growth and a 2% growth on a comparable basis. - **Sales Revenue**: Reached $8.151 billion, a 2% year-on-year growth and a 2% growth on a comparable basis. - **Operating Profit**: $1.309 billion, with a profit margin of 16.1%. - **Operating EBITA**: $1.553 billion, with a profit margin of 19.0%. - **Basic Earnings per Share**: $0.51, an 8% increase. - **Cash Flow from Operating Activities**: $1.345 billion, remaining the same as last year. **CEO Review**: - Almost all items on the income statement showed year-on-year growth. The strong development of the Electrical Division offset the weakness of the Robotics and Discrete Automation Division and the Electric Mobility business. The operating EBITA margin reached a new historical high of 19.0%. The cash flow from operating activities was basically stable at $1.3 billion, and the cumulative free cash flow this year reached $26 billion, laying the foundation for the annual target. - The order-to-shipment ratio was 1.01. The growth in order value benefited from the Electrical Division and the Process Automation Division. Short-cycle orders increased, but large orders decreased compared to last year's peak level. The data center, power, and infrastructure sectors performed strongly, while the mechanical equipment manufacturing sector related to discrete automation faced challenges. - The growth in sales revenue was lower than expected, which was related to the discrete automation business and, to some extent, the motion control business. The 19.0% operating EBITA margin was better than expected, reflecting the strong year-on-year growth of the three divisions, offsetting the weak performance of some businesses. The costs related to group management were lower than expected, providing additional support.

**Recent Acquisitions**: - The Measurement and Analysis Business Unit of the Process Automation Division acquired the Födisch Group, expanding the product line in the field of industrial emission measurement and analysis solutions, with an expected annual increase in sales revenue of approximately $55 million. - The Service Business Unit of the Electrical Division acquired the SEAM Group, expanding the existing service business, with an expected annual increase in sales revenue of approximately $90 million. **Personnel Changes**: Since August 1st, Giampiero Frisio (Jiang Peirui) as the new global president of the Electrical Division and Brandon Spencer (Bai Yuanteng) as the new global president of the Motion Control Division have been welcomed. **Outlook**: - In the fourth quarter of 2024, it is expected that the sales revenue will achieve a low to medium single-digit growth on a comparable basis, the order-to-shipment ratio will be less than 1, and the operating EBITA margin will be lower than that of the previous quarter. - It is expected that the order-to-shipment ratio for the whole year of 2024 will be greater than 1, the growth in sales revenue on a comparable basis will be less than 5%, and the operating EBITA margin will be slightly higher than 18%.