Abb Share Discussion Threads

[grupo guitarlumber] 27/11/2009 10:35

3rd UPDATE: ABB To Restructure Automation Business





(Adds CEO comment and detail.)

By Goran Mijuk

Of DOW JONES NEWSWIRES

ZURICH -(Dow Jones)- Swiss engineering company ABB Ltd. (ABB) Friday said it will overhaul its multi-billion-dollar automation business in an effort to better tap growth in a difficult economic environment.

The revamp raised hopes ABB would find fresh pockets of growth in businesses such as renewable energy and further squeeze costs. It also rekindled hopes ABB might be preparing for a bigger acquisition in the automation field.

As part of the restructuring, the company said its business units automation products and robotics will be regrouped from Jan. 1, 2010, into two new divisions--discrete automation and motion, and low-voltage products.

ABB said its process automation division, which manufactures electrical motors and generators, will remain unchanged except for the addition of the instrumentation business from the automation products division.

"ABB's automation businesses, with their focus on productivity and energy efficiency, have tremendous scope for growth," said Chief Executive Joe Hogan. "We have strengthened the market approach by grouping together businesses with similar customers, technologies and service models, which will help us accelerate the development of solutions for our customers."

Hogan said the revamp would facilitate the integration of potential acquisitions, but was done primarly to improve ABB's market access and help it generate a bigger and more stable revenue share from service offerings.

"I've been thinking about a new strucuture for the last few months," Hogan said during a conference call, adding the company's automation business looked the "most confusing" to outsiders, including investors and clients. The new structure should allow clients to realize and better tap ABB's entire range of product offerings, Hogan said.

ABB will provide fresh revenue and profit goals next year for the new divisions, which have been under pressure amid the economic downturn as clients have shelved industrial production projects due to sagging consumer demand and a shortage of credit.

In the third quarter, overall orders fell around 20% to $7 billion while revenue dropped 10% to about $7.9 billion, helped partly by ABB's still-solid power infrastructure operations. ABB's robotics unit, which manufactures industrial robots for the automotive, construction and airline industries, has been suffering from a decline in orders of more than 50% during the past few quarters.

ABB's low-voltage products division, which has annual sales of about $4.8 billion, should benefit from still relatively healthy demand for electrical equipment, the company said. The unit will be led by Tom Sjoekvist.

The new discrete automation and motion division, which will be run by Ulrich Spiesshofer, should increasingly tap into growing market segments for renewable energy. It should also benefit from ABB's robot expertise that should give the company an advantage over competitors such as Germany's Siemens AG (SI) and U.S.-based Rockwell Automation Inc (ROK). The division had pro forma sales of about $6.6 billion in 2008.

Process automation, which will continue to be led by Veli-Matti Reinikkala and has annual sales of about $8.4 billion, should benefit from the integration of the instrumentation business as measuring temperature, flow and pressure are key to optimizing industrial processes, ABB said.

Analysts welcomed the changes, expecting the new structure to help ABB further take out costs and adapt better to changing customer needs.

"The new divisional structure could also hint at upcoming mergers and acquisition activity," said Panagiotis Spiliopoulos, analyst at Bank Vontobel, who rates the stock at hold.

ABB last February ousted its long-standing CEO Fred Kindle, who left the firm amid a dispute over the company's acquisition strategy, which the board considered to be too tame.

The company's appointment of deal maker Hogan, who joined from General Electric Co (GE), was taken as a sign ABB would use some of its liquid assets for a bigger buy instead of a flurry of minor deals.

But so far no major acquisition has emerged as Hogan's arrival coincided with the start of the economic downturn, pushing him to concentrate on cost cutting and streamlining ABB's businesses in Europe and the U.S., which were hit hardest during the downturn.

However, hopes are still alive ABB could spend some of its more than $5 billion in cash for a major acquisition that would boost its market share and help generate more economies of scale.

At 0949 GMT, ABB's shares traded up CHF0.05, or 0.3%, at CHF18.6 while the broader Swiss market traded down 0.5%. The stock has gained about 19% in value this year

[grupo guitarlumber] 03/11/2009 10:51

2010
February 18 Fourth-quarter and full-year 2009 results
April 22 First-quarter 2010 results
April 26 Annual General Meeting Zurich, Switzerland
April 27 Annual Information Meeting Västerås, Sweden
July 22 Second-quarter 2010 results
October 28 Third-quarter 2010 results

[waldron] 22/10/2009 16:35

ABB Fires Several Senior Managers In Russia





By Goran Mijuk
Of DOW JONES NEWSWIRES

ZURICH -(Dow Jones)- ABB Ltd. (ABB) Thursday said it has fired several senior managers in Russia after an internal audit found that some staff members in the country have allegedly enriched themselves at the engineering giant's expense.

"We have laid off a number of senior ABB staff in Russia due to certain questionable practices," company spokesman Wolfram Eberhardt told Dow Jones Newswires, declining to detail the nature of the possible offenses.

In relation to his case, the Swiss engineering giant has put aside more than $100 million in reserves for potential write-downs and tax payments in Russia, a market that has been under heavy pressure during the economic downswing.

ABB, however, said that since the company has been the "victim" in this case, it hasn't alerted the U.S. Securities and Exchange Commission. ABB, which is based in Switzerland, also has a listing in New York and must comply with U.S. bourse laws.

Company Web Site:

-By Goran Mijuk, Dow Jones Newswires, [phone]; [e-mail]

[waldron] 19/10/2009 10:47

2nd UPDATE: ABB Sees 3Q Net Profit Of $1 Billion; Provisions Smooth





(Adds analyst comment.)

By Katharina Bart

Of DOW JONES NEWSWIRES

ZURICH -(Dow Jones)- Power transmission and automation company ABB Ltd. (ABB) said Monday it will report roughly $1 billion in net income for the third quarter, bolstered by some provisions for restructuring, tax matters and compliance being freed up.

While ABB will lift provisions to do business in Russia, others such as those linked to a European Union probe will be reversed, resulting in a $380 million lift to the third quarter's earnings.

The higher provisions in Russia are linked to an ongoing value-added tax dispute, ABB said. "As a result, ABB continues reviewing the situation and assessing its business model in Russia," the company said in a statement.

ABB will book an undisclosed reversal of existing provisions after the E.U. fined six companies, including ABB, a total of EUR67.6 million for colluding in the power transformers market.

ABB got the highest E.U. fine - EUR33.8 million - because the company had participated in a similar cartel before.

A spokesman didn't provide any further details of the Russian or the competition provisions.

Analysts drew reassurance from ABB's statement, which comes ahead of complete quarterly earnings Oct. 29.

"The announcement removes the uncertainty regarding the provisions related to anti-competitive practices and we see this as evidence of ABB's conservative provisions management," Bank Vontobel analyst Patrick Rafaisz wrote in a note to investors. He rates the stock at hold and put his CHF20 target under review pending forecast changes to account for the lower provisions.

However, the stock fell in early trading, analysts said because ABB's statement points to a lower-than-expected third-quarter profit from regular business, flattered by reversals on provisions, which analysts said aren't taxed.

At 0850 GMT, the shares were CHF0.08 lower, or down 0.4%, at CHF21.74, amid a higher broader Swiss market.

Company Web site:

-By Katharina Bart, Dow Jones Newswires; [phone]; [e-mail]

[waldron] 19/10/2009 07:43

UPDATE: ABB Sees 3Q Net Income Of $1 Billion; Changes To Provisions





(Adds detail)

ZURICH -(Dow Jones)- Swiss power transmission and automation company ABB Ltd. (ABB) said Monday it will report roughly $1 billion in net income for the third quarter, following changes in how much it sets aside in provisions for restructuring, tax matters and compliance.

ABB said it will lift provisions to do business in Russia, particularly in view of an ongoing value-added tax dispute. "As a result, ABB continues reviewing the situation and assessing its business model in Russia," the company said in a statement.

The quarter's earnings will also include changes to provisions made for alleged anti-competitive practices, including accusations from the European Union, ABB said.

Earlier this month, the E.U. fined six companies, including ABB, a total of EUR67.6 million for colluding in the power transformers market.

ABB got the highest E.U. fine - EUR33.8 million - because the company had participated in a similar cartel before.

A spokesman didn't provide any further details of the Russian or the competition provisions.

The company will announce complete quarterly earnings Oct. 29.

Company Web site:

-By Katharina Bart, Dow Jones Newswires; [phone]; [e-mail]

[waldron] 19/10/2009 07:16

ABB Sees 3Q Net Income Of $1 Billion Amid Changes To Provisioning





ZURICH -(Dow Jones)- Swiss power transmission and automation company ABB Ltd. (ABB) said Monday it will report roughly $1 billion in net income for the third quarter, following changes in how much it sets aside in provisions.

ABB said it will lift provisions to do business in Russia, particularly in view of ongoing tax matters. "As a result, ABB continues reviewing the situation and assessing its business model in Russia," the company said in a statement.

The quarter's earnings will also include changes to provisions made for alleged anti-competitive practices, including accusations from the European Union, ABB said. Earlier this month, the E.U. fined six companies, including ABB, a total of EUR67.6 million for colluding in the power transformers market.

ABB didn't provide any further details of the Russian or the competition provisions.

The company will announce its quarterly results Oct. 29.

Company Web site:

-By Katharina Bart, Dow Jones Newswires; [phone]; [e-mail]

[waldron] 19/10/2009 07:05

ABB Sees Change in Provisions of $380m, 3Q Net At $1 Billion

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By Antonio Ligi

Oct. 19 (Bloomberg) -- ABB Ltd. will adjust certain provisions resulting in an overall reduction of approximately $380 million in the third quarter of 2009, the Swiss company said in an e-mailed statement.

As a result of that adjustment, ABB expects to announce a net income for the third quarter of approximately $1 billion, it said.

Last Updated: October 19, 2009 01:21 EDT

[grupo guitarlumber] 16/10/2009 09:10

October 29 Third-quarter 2009 results

[ariane] 10/10/2009 09:11

American Superconductor Rises on Takeover Speculation (Update2)

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By Christopher Martin

Oct. 9 (Bloomberg) -- American Superconductor Corp., a maker of wind energy components and transmission lines, climbed on speculation of a possible takeover.

American Superconductor rose $1.84, or 5.9 percent, to $33.21 in Nasdaq Stock Market composite trading. The shares, which first sold in 1991 at $12.75 each, have more than doubled this year.

"It's probably just rumors floating around that ABB is interested in taking out one of its competitors," said John Hardy, an analyst at Broadpoint Amtech in Greenwich, Connecticut, who has a "neutral" rating on American Superconductor and owns none.

Zurich-based ABB Ltd. is the world's largest supplier of power grid equipment. ABB rose 10 cents to $20.72 in New York, giving it a market value of $48.1 billion. American Superconductor, based in Devens, Massachusetts, has a market value of $1.46 billion.

Kim Ciottone, an American Superconductor spokeswoman, said in an e-mail today that the company doesn't comment on rumors. Wolfram Eberhardt, an ABB spokesman, also declined to comment on the speculation.

To contact the reporter on this story: Christopher Martin in New York at [e-mail].

Last Updated: October 9, 2009 16:17 EDT

[ariane] 07/10/2009 12:33

ABB To Study EU Decision To Impose Anti-Trust Fine





ZURICH -(Dow Jones)- Swiss engineering company ABB Ltd. (ABBN.VX) said Wednesday it will study the European Commission's decision to fine the company on alleged anti-competitive practices in its power transformer business.

"In December 2008, ABB announced that it had booked provisions relating to this and other compliance, tax, and restructuring matters. In connection with its third quarter reporting process, ABB will assess what impact this decision and any other recent developments will have on those provisions and on its financial results for the quarter," the company said in a statement.

Earlier Wednesday, the European Commission fined six companies for colluding in the power transformers market.

The highest fine was given to ABB at EUR33.4 million, because the company had participated in a similar cartel before.

Company Web site: www.abb.com

-By Julia Mengewein, Dow Jones Newswires; [phone], [e-mail]

[ariane] 07/10/2009 11:20

EU Fines Six Companies For Power Transformers Cartel





BRUSSELS -(Dow Jones)- The European Commission Wednesday fined six companies for colluding in the power transformers market.

Swiss ABB Ltd. (ABB), France's Areva SA (CEI.FR) and Alstom SA (ALO.FR) and Japan's Fuji Electrics Co Ltd. (9883.TO), Hitachi Ltd. (HIT) and Toshiba Corp. (6502.TO) were all found guilty and fined for having put in place an oral market sharing agreement, where the European and Japanese power transformer makers promised to stay out of each others' markets.

Germany's Siemens AG (SIE.XE) also participated in the agreement, but wasn't fined as it had revealed the existence of the cartel to the commission.

Power transformers are used to modify the voltage in electricity transmission networks.

The highest fine was given to Swiss engineering company ABB at EUR33.4 million, because the company had participated in a similar cartel before.

-By Peppi Kiviniemi, Dow Jones Newswires; [phone]; [e-mail]

[waldron] 29/9/2009 11:06

ABB Gets $30 Million Power Contract In Canada





ZURICH -(Dow Jones)- Swiss technology company ABB Ltd. (ABBN.VX) Tuesday said it got a $30 million contract from Hydro One Network Inc., a Canadian power utility, to provide a turnkey static Var compensator, or SVC, solution for a substation serving the Toronto area.

MAIN FACTS:

-ABB will design, supply, install and commission the system, which is scheduled for completion by 2011.

-SVC is part of ABB's group of FACTS, or flexible alternating current transmission systems, technologies, which includes solutions to enhance the capacity, reliability and efficiency of existing power transmission systems and contributing to the evolution of smarter grids.

-FACTS technologies reduce the need for capital investment, saving time and reducing the complexity associated with construction of new power plants or transmission lines.

-Hydro One owns and operates Ontario's 29,000 km high-voltage transmission network that delivers electricity to large industrial customers and municipal utilities, and a 123,000 km low-voltage.


Company Web Site:

-Zurich Bureau, Dow Jones Newswires; [phone]; [e-mail]

[waldron] 17/9/2009 19:36

ABB downgraded to "hold"
10:10a.m. - Deutsche Bank
LONDON, September 17 (newratings.com) - Analysts at Deutsche Bank downgrade ABB Ltd (ABBN) from "buy" to "hold." The target price has been raised from CHF21 to CHF22.

In a research note published this morning, the analysts mention that although industrial production is expected to improve in 2010, it is likely to benefit shorter cycle companies and not heavyweights such as ABB. The company's 2010 EPS has been raised by 10%, reflecting improved industrial production levels and currency moves

[waldron] 16/9/2009 06:45

Irish backing for power link-up
An electricity link-up between Wales and Ireland is a step closer after Irish officials granted permission for a 500 MW interconnector.

Permission was given by an independent body overseeing development and major infrastructure projects in Ireland.

Flintshire Council has also granted permission for a power converter station to be built on Deeside.

It is hoped the 250km-long (155 miles) cable will be able to carry enough power for 300,000 homes by 2012.

Irish planning body An Bord Pleanala's strategic infrastructure board gave power firm EirGrid permission for the converter station in Woodland, Co. Meath and the installation of underground cables to the coast at Rush, Co. Dublin.


" Today's announcement is a major milestone for the project "
Dermot Byrne, EirGrid
It is thought construction on the £560m project, by Swedish engineering firm ABB, will start in 2010 and will take two years, creating 100 jobs.

Ireland's energy minister Eamon Ryan, said: "The east-west interconnector is vital infrastructure for our country and will bring many benefits.

"It will mean we can import electricity when required from the UK market. More importantly, it will mean we can export our electricity to the UK.

"When the wind is blowing in Ireland, we can sell this power to our neighbours".

EirGrid chief executive, Dermot Byrne, said: "Today's announcement is a major milestone for the project.

"Extensive preparation has been underway over the past 2 years involving marine surveys, route selection, public engagement, route amendments and pre-application consultation and now we have the green light to proceed to deliver this vital infrastructure for Ireland, on track and on time."

Flintshire council has granted permission for building work close to Shotton Paper Mill on Deeside Industrial Park.

The cable will come ashore at Barkby Beach, Prestatyn, then continue underground, mainly along the route of the A548 coast road, to Deeside.

Story from BBC NEWS:


Published: 2009/09/15 11:56:24 GMT

[waldron] 14/9/2009 16:34

ABB sell
Rating-Update:
Paris (aktiencheck.de AG) - Gerard Moore, Gael de-Bray und Roderick Bridge, Analysten der Société Générale, stufen die Aktie von ABB (ISIN CH0012221716/ WKN 919730) nach wie vor mit dem Rating "sell" ein. Das Kursziel werde von 16 auf 18 CHF angehoben. (14.09.2009/ac/a/u) Analyse-Datum: 14.09.2009

[waldron] 13/9/2009 10:21

October 29 Third-quarter 2009 results


2010
February 18 Fourth-quarter and full-year 2009 results
April 22 First-quarter 2010 results
April 26 Annual General Meeting Zurich, Switzerland
April 27 Annual Information Meeting Västerås, Sweden
July 22 Second-quarter 2010 results
October 28 Third-quarter 2010 results

[ariane] 11/9/2009 10:06

ABB CEO: Continue To Look At M&A Opportunities





ZURICH -(Dow Jones)- Swiss technology company ABB Ltd. (ABBN.VX) is looking at opportunities for mergers and acquisitions, Chief Executive Joe Hogan said Friday at the company's capital markets day.

"We continue to look at mergers and acquisitions, primarily at businesses that can be integrated easily. But we're also looking at bigger acquisitions," Hogan said.

Company Web site: www.abb.com

-By Martin Gelnar, Dow Jones Newswires; [phone], [e-mail]