ABB puts profitability before growth
ABB will continue to focus on a decentralized business model. Currently, the Zurich-based technology group is also giving stability and profitability a higher priority than growth. The sale of the power grid division is expected to be completed shortly.
"ABB is a company with solid foundations," Rosengren is quoted as saying in the Communication who quotes ABB on a recent webcast. This foundation should be used to "create above-average added value," the CEO explains.
"To that end, we continue to evolve our decentralized business model, strengthen our performance-driven culture, prioritize stability and profitability over growth, and drive our active portfolio management."
On June 10. ABB hosted a webcast for investors. Here, ABB CEO Björn Rosengren, who has been in office since the beginning of the year, explained the course that the Zurich-based technology group will pursue in the near future.
Over the past 18 months, ABB had moved from a matrix organization to greater autonomy for its four business units: Electrification, Industrial Automation, Motion Control, and Robotics & Manufacturing Automation.
Portfolio management more important
In a further step, the 18 divisions of these business areas are now to be given greater autonomy, ABB informs. The sale of ABB's power grid division to Hitachi is to be completed this quarter.
"Portfolio management will play an even greater role in the future," Rosengren explains in the press release. "In doing so, we will not shy away from restructuring, selling or expanding divisions." The technology group is sticking to its medium-term financial targets. ABB is aiming for annual sales growth of 3 to 6 percent and profit growth above that.
new.abb.com/ch
