Semiconductor squeeze forces ABB to shrink sales outlook



* Full-year sales guidance growth cut to 6-8%

* ABB joins other companies in facing chip shortage

* Tight labour market adds to challenges

* ABB expects supply chain problems to continue

By John Revill

ZURICH, Oct 21 (Reuters) - ABB ABBN.S expects the supply chain crunch to continue into next year, the Swiss engineering group said on Thursday, as a shortage of semiconductors made it cut its 2021 sales outlook, sending its shares down 6%.

The maker of industrial robots and drives is the latest company to warn about shortages reducing its ability to meet demand from customers ramping up output after the pandemic-induced slump in activity.

As a result ABB reported its third quarter sales increasing by 4%, less than half the 10% rate it expected in July. It now expects full-year sales growth of 6% to 8%, slower than the previous outlook for a 10% increase.

"Semiconductors is the main problem, our products are very digital and they contain a lot of semiconductors not least in machine automation, robotics and electrification," Chief Executive Rosengren told reporters.

Power cuts in China, and logistics difficulties such as harbour closures as COVID-19 restrictions returned also made it more difficult for ABB to get the parts it needed, he added.

"It has been a struggle which all industries are feeling today, this is not an ABB problem, this is a clear market problem," Rosengren said. "It will take a couple more quarters before we see it better."

Companies including Canadian auto parts maker Magna MG.TO and Sweden's Ericsson ERICb.ST have been hit by tight supply chains, while chip scarcity has brought some car assembly lines to a halt.

Swiss elevator and escalator maker Schindler SCHP.S has also flagged supply-chain problems.

Another problem was a shortage of skilled labour, particularly in the United States, which was affecting ABB and its customers.

Still, demand was buoyant, with the company's orders surging 26% while its backlog grew by $2.1 billion to $16 billion.

"Demand has gone through the roof, but with the restrictions of movement under COVID that creates a tough labour market to attract good workers," said Rosengren.

The company was looking to mitigate the impact by redesigning products to use less scarce chips, sourcing new suppliers and building up its own stocks.

ABB shares were trading 6.2% lower in early afternoon activity in Switzerland following the more muted outlook, and the third quarter sales of $7.03 billion that missed forecasts.

Operational earnings before interest, tax and amortisation rose 32% to $1.06 billion, in line with forecasts, while net profit came in at $652 million, slightly below expectations.

ABB's third biggest investor, the activist group Cevian Capital was confident the supply chain problems would be overcome and was pleased with the improvement in operating profit margin to 15.1%.

"The supply chain disruptions are a short-term thing," said founding partner Christer Gardell, whose group controls 5.2% of ABB according to Refinitiv data.

"When the supply chain blip normalises, ABB should deliver even better margins as they work through the growing order book," he told Reuters.

Still, the supply squeeze could affect others, analysts said.

"The larger than expected negative impact from the supply chain could also impact other companies, including its electrical peers Siemens, Schneider and Legrand," said JP Morgan analyst Andreas Willi.


Reporting by John Revill; Editing by Stephen Coates and Edmund Blair

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示:您的資金存在風險。槓桿商品並不適合所有客戶。請詳細閱讀我們的風險聲明