ABB’s Accelleron sees 50%-70% dividend payout ratio

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ZURICH, Aug 31 (Reuters) – ABB’s (ABBN.S) supercharger business Accelleron is aiming to distribute 50% to 70% of its net profit as dividends and targets organic revenue growth of 2 % to 4% in the medium term. engineering and technology company said Wednesday.

Accelleron’s medium-term target for free cash flow conversion is 90% to 100%, and it targets an operating EBITA margin of 23% to 26%, ABB said before a day of financial markets.

ABB last month announced it would sell the company to its shareholders with the aim of listing it on the SIX Swiss Stock Exchange in October as part of its strategy to focus more on electrification and automation. industrial. Read more

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Accelleron’s products are used in the marine, power, rail and off-road sectors, where they increase engine power and increase efficiency while reducing fuel consumption.

For the current fiscal year, Accelleron expects organic revenue growth of around 6%. Its EBITA operating margin is expected to be around 24%, the company said.

“Accelleron expects to achieve operating net income of approximately $150 million in 2022 and intends to pay its first dividend of approximately $75 million in the first half of next year, barring unforeseen events. unforeseen,” he added.

ABB was considering a sale or spin-off of Accelleron, which generated revenue of $756 million in 2021 and employs 2,300 people.

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Reporting by Michael Shields; Editing by Paul Carrel and Sherry Jacob-Phillips

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Sallie R. Loera