Abb Share Discussion Threads

[waldron] 14/12/2006 19:17

ABB wins 56 mln usd order from Bombardier for upgrade of London Underground


ZURICH (AFX) - ABB Ltd said it has won a contract from Bombardier
Transportation worth 56 mln usd to supply traction motors for new trains that
will run on the London Underground.
The traction motors for the 190 new trains, part of the Metronet Rail's 30
bln usd upgrade, will be integrated into the propulsion systems of trains
completed at Bombardier's Derby plant, the Swedish-Swiss engineering group said.
The seven- and eight-car trains will run on the network's sub-surface lines
-- the District, Circle, Metropolitan and Hammersmith & City lines -- it added.

[e-mail]
at/tw

[waldron] 14/12/2006 17:57

ABB's Credit Risk Rises on Pledge to Spend Billions of Dollars

By John Glover

Dec. 14 (Bloomberg) -- The risk of owning bonds of ABB Ltd., the world's largest builder of electricity networks, rose after the company said it may spend ``several'' billion dollars on acquisitions, according to traders betting on corporate creditworthiness in the credit-default swap market.

Contracts based on 10 million euros ($13.2 million) of debt sold by Zurich-based ABB rose for a second day, gaining to 29,700 euros from 28,900 euros, according to data compiled by Bloomberg. Credit-default swaps are financial instruments based on corporate bonds and loans that are used to speculate on a company's ability to repay debt. An increase indicates deteriorating credit quality.

Chief Executive Officer Fred Kindle, 47, said yesterday that the Zurich-based company may look to Asia and North America to grow its businesses making transformers and power products. Kindle, who has been CEO for two years, returned ABB to profit in 2005 after losses from asbestos-related lawsuits drove it close to bankruptcy.

``They're moving away from a phase where they were concentrating on improving their credit profile,'' said Rick Mattila, a credit analyst at Dresdner Kleinwort in London. ``It was inevitable they'd go for growth at some point. Their shareholders would want it and people have to be realistic about that.''

Financial Strength

ABB is rated BBB+ by Standard & Poor's, the eighth-highest investment-grade ranking, and an equivalent Baa3 by Moody's Investors Service. The company has turned itself around after it fell to as low as B1, four steps below investment grade, at Moody's in December 2002.

Mattila said ABB is now stronger financially than its Munich-based rival Siemens AG, which has the fourth-highest investment-grade credit rating from S&P and Moody's. He recommends investors hold more of ABB's bonds than indicated by the indexes they follow.

Non-investment grade bonds are rated below BBB- by S&P and Baa3 by Moody's.

ABB, which last made a billion-dollar acquisition in 1999, returned to profit last year after four consecutive annual losses. To turn itself around it cut half its workforce and sold more than $7.5 billion of units in businesses ranging from financial services to wind power.

Spending Limited

Kindle has limited the company's spending, with his only purchase so far this year being that of Calgary, Canada-based Raffin Electric Co. with 65 employees and C$20 million ($17 million) in sales.

``The key point is that there's room in the rating for significant acquisitions,'' said Mattila. Still, Kindle's comments ``were somewhat more aggressive than a couple of months ago, when they were talking about hundreds of millions rather than billions'' in purchases.

Investors who sell credit-default swaps are paid a quarterly premium, typically for five years. In return they guarantee to pay the buyer 10 million euros should the company fail to adhere to debt agreements. The seller gets the defaulted notes.

The yield premium, or spread, investors demand to hold ABB's 700 million euros of 4.625 percent bonds rather than government debt of similar maturity, narrowed 1 basis point to 71 basis points, according to Royal Bank of Canada.

The perception of European credit quality as measured by the iTraxx Crossover Index improved today. The cost of a credit- default swap based on a 10 million-euro ($13 million) contract on the index, which includes 45 companies with investment-grade and non-investment grade ratings, fell to 228,000 euros, or 0.22 percent, from 228,500 euros, according to data compiled by JPMorgan Chase & Co. The index moves an average of about 1.5 percent a day.

To contact the reporter on this story: John Glover in London at [e-mail]

Last Updated: December 14, 2006 09:04 EST

[ariane] 14/12/2006 08:17

ABB looks at possible acquisitions
Thom Rose and Philipp Encz
2006-12-14
ABB Ltd, the world's largest builder of electricity networks, may spend "several" billion dollars on acquisitions in the next 12 months, ending five years of disposals, Chief Executive Officer Fred Kindle said.

The Swiss company plans to expand units that make transformers and power products as well as drives, motors and automation systems, Kindle said.

The most attractive markets are Asia and North America, he said.

"We have the balance sheet, the financing and the management to consider larger targets," Kindle, 47, who will have been CEO for two years next month, said at ABB's headquarters in Zurich, Switzerland. "It's not important to us whether it's several smaller acquisitions or one large one, it just has to make sense and really create value."

Kindle, who cut 1,300 jobs in 2005 and oversaw a return to investment-grade credit ratings, said purchases will fill gaps in product lines and help ABB enter new markets. The company last made a billion-dollar takeover in 1999. Pushed close to bankruptcy by asbestos claims in 2002, it spent subsequent years cutting half its workforce and selling units from financial services to wind power, according to Bloomberg News.

Shares of ABB have climbed 61 percent this year. Competitor Schneider Electric SA, the world's largest maker of circuit breakers, has seen its shares gain 11 percent, while Siemens AG, Europe's biggest engineering company, has gained 1.6 percent.

Kindle has until now limited ABB's spending, with just one purchase so far this year: Calgary, Canada-based Raffin Electric Co with 65 employees and US$17 million in sales. The transformation from a seller to a buyer follows the company's return to profit last year after four straight annual losses.

ABB hasn't seen any slowdown in fast-expanding Asian markets, Kindle said, with sales in China forecast to increase by one-third to US$4 billion in the next three-to-four years.

"Emerging markets are very interesting, particularly Asia," Kindle said on December 8. "We are very profitable in China and in India. The growth there is enormous."

[ariane] 13/12/2006 10:36

ABB CEO sees Q4 margins declining, confirms mid-term targets, no 2007 downturn


ZURICH (AFX) - ABB Ltd's margins are likely to decline in the fourth
quarter, the Swedish-Swiss engineering group's chief executive Fred Kindle said
in an interview with Bloomberg TV this morning.
However, Kindle confirmed the group's mid-term targets.
ABB will revise its strategic position in the second quarter of 2007 and
will announce new targets in the autumn that year, Kindle added.
Kindle also said he did not see signs for an economic downturn in 2007, but
warned that phases of economic boom have rarely lasted for longer than five
years.





[e-mail]
jmt/cml

[ariane] 13/12/2006 08:46

ABB's Kindle May Spend `Several' Billion Dollars on Takeovers

By Thom Rose and Philipp Encz

Dec. 13 (Bloomberg) -- ABB Ltd., the world's largest builder of electricity networks, may spend ``several'' billion dollars on acquisitions in the next 12 months, ending five years of disposals, Chief Executive Officer Fred Kindle said.

The Swiss company plans to expand units that make transformers and power products as well as drives, motors and automation systems, Kindle, 47, said in an interview. The most attractive markets are Asia and North America, he said.

``We have the balance sheet, the financing and the management to consider larger targets,'' Kindle, who will have been CEO for two years next month, said at ABB's headquarters in Zurich. ``It's not important to us whether it's several smaller acquisitions or one large one, it just has to make sense and really create value.''

Kindle, who cut 1,300 jobs in 2005 and oversaw a return to investment-grade credit ratings, said purchases will fill gaps in product lines and help ABB enter new markets. The company last made a billion-dollar takeover in 1999. Pushed close to bankruptcy by asbestos claims in 2002, it spent subsequent years cutting half its workforce and selling units from financial services to wind power.

Shares of ABB have climbed 61 percent this year. Stock of competitor Schneider Electric SA, the world's largest maker of circuit breakers, has added 11 percent, while Siemens AG, Europe's biggest engineering company, has gained 1.6 percent.

Kindle has until now limited ABB's spending, with just one purchase so far this year: Calgary, Canada-based Raffin Electric Co. with 65 employees and C$20 million ($17 million) in sales. The transformation from a seller to a buyer follows the company's return to profit last year after four straight annual losses.

Asian Drive

ABB hasn't seen any slowdown in fast-expanding Asian markets, Kindle said, with sales in China forecast to increase by one-third to $4 billion in the next three-to-four years.

``Emerging markets are very interesting, particularly Asia,'' Kindle said in the interview on Dec. 8. ``We are very profitable in China and in India. The growth there is enormous.''

ABB expects to boost its Chinese workforce to 12,000 by the end of next year, 12 months earlier than originally planned. The company's projects in the world's most populous country include installing the electrical equipment for the Three-Gorges Dam. The CEO said he will consider purchases in North America, where ABB is still ``comparatively weak.''

ABB last spent more than $1 billion on a takeover seven years ago when it bought Elsag Bailey Process Automation NV for $2.1 billion from Finmeccanica SpA. ABB's last major acquisition was Entrelec Groupe SA, which it bought in 2001 for 390 million euros ($515 million) in cash and debt.

Sales of electrical equipment helped ABB to more than double third-quarter profit as utilities upgraded decades-old networks and Asian economic growth spurred investment. Demand for ABB's building controls also surged, led by factories in India and China and oil and gas customers in the Middle East.

Profitability Dip

An increasing volume of orders may cause profitability to dip in the final quarter of the year from the third quarter's 11.4 percent operating margin, Kindle said. ABB had been aiming for a margin of 10 percent by 2009, though the CEO plans to wait until next year before announcing new mid-term targets.

``The more volume we pump through the profit and loss, and this is going to happen in the fourth quarter, the slightly lower the margin gets,'' Kindle said. ``Higher-volume orders typically carry a lower margin.''

ABB's robotics unit will probably return to profit in 2007 after posting a loss this year, Kindle said.

Dormann Disposals

Chairman Juergen Dormann, Kindle's predecessor as CEO, spent two years eliminating almost 45,000 jobs and selling units to stave off bankruptcy. The 66-year-old plans to retire in May, he said on Monday.

Formed in 1988 through the merger of BBC Brown Boveri of Switzerland and ASEA AB of Sweden, ABB resolved the bulk of outstanding asbestos claims in April with a $1.43 billion settlement package for its Combustion Engineering subsidiary. Standard & Poor's and Moody's Investors Service both then restored the company to an investment-grade credit rating.

Most of the company's reorganization plan has been carried out. ABB still has more than $1 billion in businesses that don't fit into its main areas of focus, including Lummus and a German building systems unit. Buyers are being sought, Kindle said.

``I hope it doesn't come to large restructuring in the next few years,'' Kindle said. ``I'd rather focus on growth.''

To contact the reporter on this story: Thom Rose in Frankfurt at [e-mail] ; Philipp Encz in Munich at [e-mail] .

Last Updated: December 13, 2006 03:03 EST

[ariane] 12/12/2006 10:40

ABB wins 36 mln usd order from ThyssenKrupp for Brazilian steel plant


ZURICH (AFX) - ABB Ltd said it has won a contract worth 36 mln usd from
ThyssenKrupp AG for engineering and power equipment work at one of the German
steel maker's new plants in Brazil.
The order for the plant, which is scheduled to commence operations in 2008,
was booked in the fourth quarter, 2006, the Swedish-Swiss engineering group
said.
Under the terms of the contract, ABB will carry out extensive engineering
work and supply power equipment, including a 138-kilovolt substation, high- and
medium-voltage switchgear, transformers and power cables.
The steel plant, southeast of Rio de Janeiro, is a joint venture of
ThyssenKrupp and Brazilian ore producer Companhia Vale do Rio Doce (CVRD), the
largest producer of iron ore and pellets in the world.
[e-mail]
at/rar

[waldron] 11/12/2006 07:40

cheers She

enjoy your week

[waldron] 11/12/2006 07:39

ABB chairman Juergen Dormann to step down at next AGM in May 2007


ZURICH (AFX) - ABB Ltd said Juergen Dormann has decided to retire from the
board of the Swedish-Swiss engineering group, after completing his current term
as chairman, at the company's next AGM on May 3, 2007.
ABB said its board is starting the process to nominate a successor and will
inform shareholders before the AGM.
Dormann joined ABB's board in 1998 and served as chairman from November
2001.
Dormann was also CEO of ABB from September 2002 to December 2004 and is
widely credited with the group's turnaround from near bankruptcy.

[e-mail]
at/jlw/at/jlw

[sheeneqa] 08/12/2006 13:36

ABB drive system to power Boeing wind tunnel
Dec. 8: An ABB variable speed drive system is to power the giant fan that generates subsonic wind speeds at Boeing's flagship wind tunnel in Philadelphia. ABB has supplied similar drive systems for wind tunnels operated by NASA and the U.S. Air Force.

[sheeneqa] 08/12/2006 13:35

Switzerland Soars
The Swiss stock market has flourished over the past few years. Switzerland's index (SSMI) has gained 120% since early 2003. That's an average return of 40% per year!

Granted, this isn't as powerful as the 225% the German index (DAX) has made since then... or even the 150% that the Chinese Hang Seng totaled.

But it puts Switzerland's potential into perspective when Britain's FTSE 100 has only gained 82% during the same time.

Switzerland's stock market is a contender in the European arena, and has been severely overlooked. Due to its cyclical slow rise, its market still has more room to grow.

Take, for example, the iShares MSCI Switzerland Index Fund (EWL), one of the easiest ways for an American investor to bank on the success of the Swiss market. You could have bought a piece of this fund for $9.50 in March 2003. Today, it's still lowly valued at $25, a gain of 163% in a little more than three years.




In fact, just yesterday, the EWL hit a new historic high of $24.76. This, of course, is a bullish indication.

The top sector holdings in this fund consist of pharmaceuticals and biotech companies. Diversified financials take the back seat, even though they compose five of the top 10 holdings.

The most important trend in the EWL fund is the steady increase of investment. The fund continues to boast extremely strong support in all aspects as well as high Relative Strength and Volume.

As long as this continues, the EWL could very well double over the next three years.

Swiss drug maker Novartis AG (NVS:NYSE) has swelled 67% in the last three years to $60 per share. Agricultural chemical company Syngenta AG (SYT:NYSE) has put on 289% since 2003.

And Swiss foreign money centers UBS AG (UBS:NYSE) and Credit Suisse Group (CS:NYSE) have jumped 200% and 313%, respectively, to over $60 per share.

Strong Economic Growth

Currently, Switzerland is enjoying strong growth, low unemployment rates, low inflation and an account surplus.

Swiss interest rates are extremely low at 1.75%, which has made the Swiss franc a popular denomination of currency as a safe haven... and has also put the franc at historic five-year lows against the euro.

According to the Organisation for Economic Cooperation and Development (OECD), GDP numbers for 2006 in Switzerland are revised up to 3% from 2.4%. This marks the fourth year of strong growth for the country.

The OECD has revised 2008 GDP numbers to a lower growth of 2% due to regular cyclical fears of interest rate hikes and a slight, but temporary slowdown in exports.

Since the economy is almost working at full employment, interest rate hikes are a must. Jean-Pierre Roth, president of the Swiss National Bank, has commented that this month could mean a quarter-point hike to the benchmark 2% interest rate, "to prevent the economy from overheating."

But besides tourism, consumer spending is one of Switzerland's main attributes. Combining the domestic wallet with the tourist wallet should make up for any slight weaknesses in the economy.

As long as the country continues to be diligent with its interest rates and slows growth to an adequate speed, Switzerland should continue to have a few more consecutive years of strong economic growth.

Ann Sosnowski
Editor, WaveStrength

[waldron] 05/12/2006 14:12

thats it i'am afraid

[sheeneqa] 05/12/2006 14:10

Hi waldron, could only find AB and FMR who have larger than 5%, do you know of others? regards....

[waldron] 05/12/2006 11:26

ABB wins 130 mln usd refinery order in Poland from Grupa Lotos

ZURICH (AFX) - ABB LTD said it has won a contract worth 130 mln usd from
Grupa Lotos S.A. to provide engineering, procurement and construction for a
diesel desulphurisation project in Gdansk, Poland.
The investment is part of the 1.3 bln usd residue upgrade project that Grupa
Lotos has begun in a complex of Gdansk refineries to help them operate more
efficiently and satisfy growing regulatory demands for environmentally friendly
refinery products, the Swedish Swiss engineering group said.
Under the terms of the contract, ABB is responsible for detailed
engineering, procurement of equipment and material, construction and civil work,
and construction management including commissioning, the group said.
The desulphurisation unit will enable Grupa Lotos to comply with EU
requirements that diesel oil contain less than 10 parts per million of sulphur,
which will come into force in 2009.


[e-mail]
jmt/tw

[waldron] 04/12/2006 14:43

Estonia launches ABB's Estlink undersea electricity cable

TALLINN (AFX) - Estonia today inaugurated Estlink, the 110 mln eur,
100-kilometre undersea electricity cable produced by ABB Ltd to link Finland and
Estonia.
Although the Estlink cable was laid mainly to provide the Nordic countries
with electricity produced in Estonia, Latvia and Lithuania, it has been hailed
as a key step in ensuring energy security for the Baltic states.
"The new link enhances greatly the energy security of Estonia," Estonian
Minister for Economic Affairs Edgar Savisaar said at the Estonian opening
ceremony in Harku, near the capital Tallinn.
"The existence of Estlink will enable us to manage energy in a better way
should our cooperation with the Russian energy system collapse," Savisaar said.
The Baltic states are still linked to the Russian electricity grid, as they
were during Soviet rule, and also rely heavily on Russia for supplies of natural
gas and oil. Around 80 pct of Lithuania's power supply comes from the Soviet-era
Ignalina nuclear plant, which the country has agreed to shut down by 2009.
Latvia meanwhile imports the bulk of its electricity from its two Baltic
neighbours.
"Today we made history. We have, for the very first time connected power
grids of the Baltic States and Finland," said Indrek Aarna, chairman of the
management board of Nordic Energy Link.
EU Energy Commissioner Andris Piebalgs said at the inauguration that the
Estlink cable had a key role to play in ensuring power supply continuity.
"In today's world, the security of supplies is critical," Piebalgs said at
the inauguration ceremony in Estonia.
"The Estlink cable builds more security of supply for the Baltic states but
also for Finland."
Partners in the Estlink project are the national energy companies of the
three Baltic states -- Eesti Energia of Estonia, Latvenergo of Latvia and
Lietuvos Energija of Lithuania -- and Pohjolan Voima and Helsingin Energia of
Finland.




[e-mail]
afp/cmr

[ariane] 01/12/2006 12:27

Goldman Sachs Lifts ABB's Target To CHF19.10

Friday, December 01, 2006 6:52:45 AM ET
Dow Jones Newswires



1035 GMT [Dow Jones] Goldman Sachs lifts ABB's (ABB) target price to CHF19.10 from CHF18.60 in response to market movements in recent months, maintains neutral rating. The upside risk to Goldman's view is a potential quickening of growth, which would bolster near-term margins, notes Goldman. The downside risk is possible margin disappointment. Shares trade +1% at CHF19.55. (KAB)

[waldron] 29/11/2006 09:08

She

with fidelity passing the 5% thershold can you now include
major shareholders in your header.

enjoy your day

[ariane] 28/11/2006 07:34

AFX News Limited
ABB says Fidelity shareholding surpasses 5 pct threshold
11.28.2006, 02:23 AM




ZURICH (AFX) - Swedish-Swiss engineering group ABB Ltd said Boston-based Fidelity Management and Research Corp (FMR) currently owns 5.1 pct of its total outstanding share capital.

ABB said Fidelity's holding now amounts to 111,888,682 registered shares, thus surpassing the 5 pct threshold.

[e-mail]




cmw/rar

[waldron] 26/11/2006 16:08

ABB and Ciba to adjust its reported equity downwards under new US GAAP standard

ZURICH (AFX) - ABB LTD and Ciba Spezialitaeten will have to adjust their
reported equity downwards under the new US GAAP accounting standard,
SonntagsZeitung reported.
The Swiss weekly said both companies confirmed the information.
While not citing specific figures, the newspaper said the required
adjustments were due to different accounting standards concerning the groups'
pension funds.
Last week SonntagsZeitung already reported that Credit Suisse will have to
adjust its reported equity downwards by over 2 bln sfr under the new standard.
While the bank's pension fund currently enjoys a 116 pct liquidity ratio,
under the new standard it shows a deficit as it requires future pay rises to be
taken into account.
[e-mail]
jmt/rw

[waldron] 24/11/2006 15:32

ABB-built Estlink undersea cable between Finland, Estonia goes on stream

HELSINKI (AFX) - Estlink, the 100-kilometre undersea cable produced by ABB
Ltd to link Finland and Estonia and laid on the floor of the Gulf of Finland has
sent the first electrical current to Finland today, said Indrek Aarna, manager
of Eesti Energia unit Nordic Energy Link.
The cable is the first interconnection between the Baltic and Nordic
electricity markets.
Estlink is a 110 mln eur joint venture project between Eesti Energia,
Latvenergo, Lietuvos Energija, Pohjolan Voima and Helsinki Energy.
Estonian state-owned Eesti Energia is the main shareholder.
Earlier this month, it was announced that the project might face some delays
due to technical problems.
[e-mail]
afs/jsa

[ariane] 22/11/2006 06:40

Investor calendar
2007



February 15 Fourth-quarter and full-year 2006 results
April 26 First-quarter 2007 results
May 3 Annual General Meeting Zurich/Switzerland
May 4 Annual general information meeting Västerås/Sweden
July 26 Second-quarter 2007 results
October 25 Third-quarter 2007 results

[waldron] 16/11/2006 11:00

ABB wins 180 usd power grid order from Canada's Hydro-Quebec

ZURICH (AFX) - ABB Ltd said it has received a 180 mln usd order from
Canada's Hydro-Quebec to strengthen the electrical transmission grid between the
Canadian provinces of Quebec and Ontario.
The Swedish-Swiss engineering group said its high-voltage direct current
(HVDC) converter station will add 1,250 megawatts of transmission capacity
between Quebec and Ontario by March 2009.
In addition to improving grid reliability in both provinces, Ontario will
benefit by having substantially more access to emission-free hydroelectric power
from Quebec, ABB said.
Hydro-Quebec is one of the largest producers of hydroelectric power in the
world, and operates the largest power transmission system in North America.


[e-mail]
at/gp

[ariane] 13/11/2006 14:13

Recent Power Blackouts Read Favorably To ABB

Monday, November 13, 2006 8:51:05 AM ET
Dow Jones Newswires



1236 GMT [Dow Jones]--Recent power blackouts across Europe are prompting calls for more investment in transformers and distribution, notes Bear Stearns. The US regulator has increased incentives to drive T&D investments, the EU energy commissioner is calling for increased investment, and emerging market growth looks to remain very strong, says Bear's Tom Melville. ABB (ABB) is already seeing strong demand from European T&D investment, is set to be a beneficiary in the US from an uptick in spending, and is best exposed in its sector to emerging markets. Rates at outperform, target is CHF22. Shares +0.8% at CHF19.30. (KAB)

[ariane] 13/11/2006 07:13

ABB wins 39 mln usd order from Dubai Aluminium to upgrade smelter complex

ZURICH (AFX) - Swedish-Swiss engineering group ABB Ltd said it has been
awarded a 39 mln usd contract by Dubai Aluminium Company (Dubal) to upgrade
rectifier, transformer and automation systems at its smelter complex in Dubai.
Commissioning of the new ABB systems will begin during July 2007 and is set
for completion in March 2008, the company said.
The project includes replacing five high-voltage regulating rectifier
transformers with larger units, to increase capacity and allow Dubal to combine
two existing smelting potlines, it said.
Rectifiers are devices that convert alternating current to direct current.
Dubai Aluminium operates the largest single-site aluminium smelter in the
Western world, with an annual output exceeding 850,000 metric tons.

[e-mail]
at/jlw

[ariane] 10/11/2006 17:57

ABB-built Finnish-Estonian undersea electric cable start-up could be delayed
HELSINKI (AFX) - The start-up of the Estlink undersea cable, supplied by ABB Ltd, that will join the Baltic and Nordic grids, could be delayed by problems with testing at the converter station in Finland, the company in charge of the project said today.

The cable, which runs from Harku in Estonia to Espoo in Finland, was slated to come on stream by the end of this month.

'Some problems have occurred during the tests in the converter station in Espoo, which might delay the start-up of the cable,' Nordic Energy Link said.

Nordic Energy Link was set up by Estonian state-owned Eesti Energia and other Baltic and Finnish power companies to operate Estlink.

It said ABB is investigating the problem.

Tests at the Harku converter station are still in progress, it added. [e-mail] je/jsa