Accelleron Industries Reports Lower Net Profit, but Higher Revenue

Accelleron Industries, the Swiss engine-turbocharger maker that spun off from ABB last year, has announced a lower net profit for the first half of the year. This decrease is primarily due to separation and build-up costs. However, the company has seen higher revenue thanks to strong demand and price increases.

Net Profit and Revenue

Accelleron revealed a net profit of $43.2 million for the first half, compared to $63.6 million during the same period last year. The decline in net profit can be attributed to one-off and other costs related to the separation from ABB and build-up activities.

On the other hand, revenue experienced a significant growth of 17%, reaching $448.6 million. This increase was seen in both the high-speed segment and the medium and low-speed segment. Unfortunately, due to missing components, some orders were unable to be delivered, resulting in high inventories. The company expects continued supply-chain issues in the second half of the year.

Operational Earnings

Operational earnings before interest, taxes, and amortization (EBITA) showed positive growth, amounting to $108 million compared to $96.8 million previously.

Full-Year Guidance

Despite the challenges faced in the first half of the year, Accelleron maintains its full-year guidance. The company expects organic revenue growth of around 13%. This growth trajectory could potentially reach 15% with the contribution of recently acquired Officine Meccaniche Torino.

Chief Executive Daniel Bischofberger expressed optimism for positive market developments in the second half of 2023. However, he expects a more normalized growth trajectory during this period.

It is clear that Accelleron Industries is navigating through challenges while continuing to drive revenue growth. With a focus on operational efficiency and addressing supply-chain concerns, the company remains confident in its ability to achieve its long-term goals.