ABB lowers sales forecast as supply bottlenecks widen, Auto News, ET Auto

ABB said it was hit with bottlenecks in the third quarter and expected the shortages to continue for the remainder of the year.

ZURICH: ABB lowered its full-year sales outlook on Thursday, with the Swiss engineering and technology group becoming the latest company to report shortages of key components limiting its ability to supply customers.

The maker of industrial robots and electric car charging stations said it now expects its annual sales to increase by 6% to 8%, down from its previous vision for an increase of one. just under 10%.

ABB said it was hit with bottlenecks in the third quarter and expected the shortages to continue for the remainder of the year.

“In the fourth quarter of 2021, ABB expects an ever-tight supply chain that will impact customer deliveries,” ABB said when releasing its third quarter results.

Companies including Canadian auto parts maker Magna and Sweden’s Ericsson have been hit by tight supply chains as suppliers made jerky restarts in production after the pandemic ended.

The scarcity of chips has also hampered automotive production around the world, causing some assembly lines to shut down.

ABB Managing Director Bjorn Rosengren noted a “tough supply chain environment” as ABB announced orders to increase much faster than revenues in its third quarter.

On a comparable basis, reducing the impact of currency movements and divestments, ABB’s revenue grew 4% to $ 7.03 billion, missing forecast by $ 7.3 billion .

Operating profit before interest, taxes and depreciation rose 32% to $ 1.06 billion, the Zurich-based company said, as expected.

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As part of the agreement, ABB will also support Italvolt in functions such as the design and development of solutions for energy management and production optimization, as well as robotics, automation and management. data, the startup said in a statement.

The device, which can offer 100 km of range in less than 3 minutes, will be available in Europe and the United States by the end of the year, he added.

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