ABB to pay $495M for 51% stake in low-voltage power distribution JV with Mitsubishi Electric
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ABB (ABBNY) announced Tuesday the creation of a joint venture with Mitsubishi Electric's (MIELY) (MIELF) newly carved-out low-voltage power distribution business, forming a new company focused on low-voltage solutions for Asian markets.
The company said it will pay ~$495M to acquire a controlling 51% stake in the JV as well as full ownership of the related sales operations outside of Japan of Mitsubishi Electric’s (MIELY) (MIELF) low-voltage power distribution products.
ABB (ABBNY) fell 5.5% in early European trading amid a broad selloff in AI-related stocks that overshadowed mixed Q3 results.
Q3 net profit fell to $1.18B from $1.21B in the year-earlier period, and operational EBITA rose 24% Y/Y to $2.03B, compared to analyst consensus for net profit at $1.42B and operational EBITA at $2B, while margin expanded to 20.8% from 19.2%.
Q3 revenue rose 14% Y/Y to $9.7B, roughly in line with the $9.74B consensus estimate, as orders jumped 40% on a comparable basis to $12.05B.
The company raised its annual guidance for the third time this year, now anticipating full-year comparable revenue growth in the low-teens percentage range, vs. previous guidance of an increase ranging from a low double-digit to a low-teens figure.
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