369-HI-R-M-0-0-H-0The results of the second quarter once again confirm the effectiveness of the ABB Way operating model, which has been implemented since 2020, and ABB continues to show good operating performance. We have a record operating margin before interest, tax and amortization, good cash flow, and announced an even larger acquisition. Overall, I am pleased with the result.
Orders for the quarter remained comparable to last year’s high level on a comparable basis, driven by strong growth in the Electrical and Process Automation divisions, which offset weakness in the Mechanical automation and electric Mobility businesses and a significant decline in the Motion Control Division on a comparable basis. We saw a positive shift in short-cycle business orders after several quarters of decline. In the business areas related to projects and systems, customer demand continues to be strong and projects continue to be plentiful.
Sales revenue reached a high level of $8.2 billion, and we managed to achieve a book-to-bill ratio of 1.02 (more orders than shipments). With this indicator at 1.08 in the first half of the year and current expectations of a generally robust market environment, we are confident of achieving a book-to-bill ratio of greater t369-HI-R-M-0-0-H-0han 1 in 2024. The operating EBITDA margin was 19.0%, thanks to higher volumes and a positive impact on prices, with the Group accounts also making a positive contribution overall.
Free cash flow of $918 million was higher than in the same period last year, and the $1.5 billion run in the first half helped us achieve our full-year goal of reaching at least a similar level to last year.
Enabling a low-carbon society is one of ABB’s core priorities. We are pleased that ABB’s Scope 1, Scope 2 and Scope 3 emissions reduction targets for 2030 and 2050 have been approved by the Science Targets Initiative (SBTi), in line with the Paris Agreement. We are committed to reducing ABB’s Scope I and Scope II emissions by 80% and 100%, respectively, by 2030 and 2050. With the newly set Scope 3 target of reducing absolute emissions by 25% by 2022, we will work closely with upstream and downstream partners to provide our customers with products and solutions to help them scale up renewable energy, improve energy efficiency, increase electrification and reduce emissions.
The recently released OmniCore, a new generation of robot control platform, is an examp369-HI-R-M-0-0-H-0le of our drive to develop energy efficient solutions. Compared to previous ABB controllers, the platform enables robots to operate 25% faster and consume 20% less energy. The OmniCore platform manages motion, sensors and application devices in a unique single control architecture – integrating our full suite of leading hardware and software through one platform and one language.
