Abb Share Discussion Threads

[ariane] 15/2/2007 06:56

RPT ABB posts below consensus FY results; says order growth to moderate in 2007


(Repeating for technical reasons)
ZURICH (AFX) - Swedish-Swiss engineering group ABB Ltd reported a slightly
below consensus full-year net profit of 1.390 bln usd, up from 735 mln last
year, citing growing revenues, higher capacity utilization and further cost
reductions.
Looing ahead, ABB said it expects order growth to moderate in 2007 in view
of the extraordinarily high growth rates experienced last year.
Nevertheless, the overall business environment next year is not expected to
vary significantly from 2007, ABB said.
Operating profit and sales fell also short of expetations, with EBIT rising
to 2.586 bln usd, from 1.778 bln, on sales of 24.412 bln, against 22.012 bln.
Analysts had forecast net profit of 1.385-1.566 bln usd, or 1.441 bln on
average, and EBIT of 2.553-2.636 bln, or an average of 2.603 bln.
Sales had been expected to reach 24.042-24.916 bln usd, or an average of
24.428 bln.
ABB said it will propose shareholders a doubling in dividend to 0.24 sfr per
share, from 0.12 sfr last year.
[e-mail]
at/hjp

[ariane] 14/2/2007 07:06

Siemens and ABB offices raided in EU cartel probe
By Tobias Buck in Brussels and Richard Milne in Frankfurt

Published: February 14 2007 02:00 | Last updated: February 14 2007 02:00

The antitrust problems that have engulfed Siemens and several of its engineering rivals deepened yesterday when the European Commission raided the offices of several manufacturers in Germany, France and Austria in connection with a cartel probe.

The Commission refused to identify the companies targeted in the raids but Siemens and ABB confirmed that their offices had been searched.

Brussels said the groups were suspected of forming a price-fixing cartel in the market for transformers, key components in the power grid in controlling the voltage. Siemens said in a statement that the Brussels antitrust watchdog was investigating five companies, and added: "The EU Commission is investigating collusion in the area of power transformers in Germany, Austria and the Netherlands between 1999 and 2003."

The Commission refused to confirm the precise extent of its probe.

The raids are deeply troubling for the groups involved, coming weeks after Siemens, ABB, Alstom and other engineering companies were found guilty of operating another cartel in the market for electricity transmission systems. The groups were together fined a record €751m ($978m), with Siemens alone accounting for €397m of the total.

Companies that are found guilty of operating a cartel face fines of up to 10 per cent of their global annual turnover. The Commission is particularly tough on repeat offenders and, under new rules introduced last year, Siemens and its peers could find their fines being double the normal level should they be found guilty in any new case resulting from this month's raids.

The German engineering group said yesterday it had suspended three employees in connection with the probe at the power transmission division.

Udo Niehage, the president of Siemens' power transmission and distribution group, said: "Isolated incidents of this nature cast a bad light on the strong achievements of all other employees. This cannot be tolerated."

Siemens' latest woes come on top of a €420m bribery scandal that has tainted Siemens' image and raised questions about the competence of the German industrial group's controls and management.

The scandal has focused mainly on the telecoms division.

Siemens has denied wrongdoing and blamed a group of rogue employees.

In the cartel case, the Commission is likely to spend months, if not years, sifting the evidence and drawing up formal charges against the groups which will then get the chance to defend themselves in a hearing in Brussels before the Commission reaches its final verdict.

A spokesman for Neelie Kroes, the EU competition commissioner, stressed that the raids in themselves did not prejudge the outcome of the investigation.

[waldron] 09/2/2007 17:15

thnx She

enjoy your weekend

[sheeneqa] 09/2/2007 13:42

ABB Web sites receive face-lift
2007-02-08 - ABB's Internet sites are being revamped to give them a sleeker, more modern appearance and to make surfing easier for users with slower network connections.

The new design was launched on abb.com and all country Web sites on Feb 8 and incorporates a number of features to help users find what they are looking for more quickly.

The search window and "toolbox" functions have been moved to a more prominent position and a new "log in" function has been added to provide access to restricted online services and content. Customers will be individually informed as their respective services become available through the log in on www.abb.com.

ABB's Web sites had 1.3 million visits in January this year, an increase of 23 per cent compared to one year earlier. The users viewed more than 8 million pages.

[waldron] 07/2/2007 16:54

ABB "overweight," target price raised

Wednesday, February 07, 2007 5:24:09 AM ET
J.P. Morgan Securities

LONDON, February 7 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on ABB (ABJ.ETR), while raising their estimates for the company. The target price has been raised from CHF22 to CHF24.

In a research note published this morning, the analysts mention that the company's peers have recently reported robust results. ABB is likely to report robust 4Q results despite Robotics charges and negative mix of increased share of large contracts being executed with reduced margins, the analysts say. The company's results are likely to result in increased 2007 EPS consensus expectations, JP Morgan adds. The adjusted EPS estimates for 2007 and 2008 have been raised by 7% and 5%, respectively.

[ariane] 06/2/2007 08:44

ABB divestment from power projects to yield book profit of 90 mln usd - UPDATE


(adds book value figures for stakes and profit figures from divestment)
ZURICH (AFX) - ABB Ltd's divestment from power projects in Morocco and India
will lead to a book profit of around 90 mln usd, a spokesman of the
Swedish-Swiss engineering group said.
"At the end of 2005 the stakes enjoyed a book value of around 400 mln usd,"
the spokesman said.
Earlier, ABB reported it has agreed to sell its stakes in two independent
power projects in Morocco and India to Taqa, the Abu Dhabi National Energy
Company, for 490 mln usd.
The divestment comes as part of the group's strategy to focus on its core
power and automation businesses.
ABB said the transaction remains subject to customary approvals and is
expected to be completed in the second quarter.
[e-mail]
jmt/ic

[waldron] 06/2/2007 07:14

ABB sells stakes in power projects in Morocco and India to Taqa for 490 mln usd


ZURICH (AFX) - ABB Ltd said it has agreed to sell its stakes in two
independent power projects in Morocco and India to Taqa, the Abu Dhabi National
Energy Company, for 490 mln usd.
The divestment is part of the group's strategy to focus on its core power
and automation businesses, the Swedish-Swiss engineering group said.
"We obtained a fair price for the stakes, fully reflecting the quality of
the assets," said ABB chief financial officer Michel Demare.
The transaction remains subject to customary approvals and is expected to be
completed in the second quarter.




[e-mail]
jmt/jlw/jmt/jlw

[Abuse team] 05/2/2007 10:40

Post removed by ADVFN

[waldron] 05/2/2007 10:40

ABB wins 32 mln usd order from Sappi Saiccor in South Africa


ZURICH (AFX) - ABB LTD said it has won a 32 mln usd order from Sappi Saiccor
to upgrade the worlds largest chemical cellulose plant, located near the port
city of Durban in South Africa.
Under the terms of the contract, the Swedish-Swiss engineering group will
supply all the electrical, control and fieldbus communication equipment for the
project, which will increase the plants pulp capacity from about 585,000 tons
per year to more than 800,000 tons, ABB said.
The order was booked during the fourth quarter of 2006.


[e-mail]
jmt/gp

[ariane] 02/2/2007 14:56

CORRECTION ABB initiates process to divest Lummus unit


(correcting to show ABB does not plan to exit oil, gas, petrochemicals
sector)
ZURICH (AFX) - ABB Ltd said it has decided to begin the divestment of its
downstream oil and gas business, Lummus Global.
The sale of the unit is in line with the Swedish-Swiss engineering group's
strategic refocusing on its core power and automation technologies segment.
The group's upstream oil and gas business, including Vetco Gray, were
already divested in 2004.
At the time, ABB announced plans to sell downstream activities as well,
provided market and other conditions were right.
However, ABB's core automation and power technology businesses remains
committed to the oil and gas sector, where it expects significant growth on a
long term basis, ABB said.
Asbestos claims against Lummus Global were settled last September.
[e-mail]
at/jag/jmt/jfr

[grupo guitarlumber] 02/2/2007 08:09

ABB initiates process to divest Lummus unit


ZURICH (AFX) - ABB Ltd said it has decided to begin the divestment of its
downstream oil and gas business, Lummus Global.
The sale of the unit will complete the Swedish-Swiss engineering group's
refocusing on its core power and automation technologies segment and represents
ABB's exit of the oil, gas and petrochemicals sector.
The group's upstream oil and gas business, including Vetco Gray, were
already divested in 2004.
At the time, ABB announced plans to sell downstream activities as well,
provided market and other conditions were right.
Asbestos claims against the unit were settled last September.
[e-mail]
at/jag

[grupo guitarlumber] 02/2/2007 07:08

Abb Statement re divestment


RNS Number:6098Q
ABB Ltd
02 February 2007



ABB statement


Zurich, Switzerland, February 2, 2007 - In the recent years, the ABB Group has
been successfully implementing its strategy to focus on its strengths in power
and automation technologies.

As part of this focus, ABB decided to divest certain non core businesses,
including its former Oil, Gas, Petrochemicals division. At the first stage, the
Upstream oil and gas companies including Vetco Gray were divested in 2004. The
announced intent has been to also divest the Downstream oil and gas business,
Lummus Global, when market and other conditions were appropriate.

The ABB Group has now decided to launch the second stage and start the process
to divest all of the Lummus Global business.

ABB's core automation and power technology businesses remain totally committed
to the oil and gas sector. We maintain long-standing relationships with key
customers in this sector which we will continue to serve. This is an area where
ABB has strong market positions across our activities and which we expect to
continue to benefit from significant growth on a long term basis.




This information is provided by RNS
The company news service from the London Stock Exchange

END
DISTTMFTMMJMMRR

[ariane] 31/1/2007 19:08

--------------------------------------------------------------------------------
Variable speed drives critical to RainForest's heat wheels
Author:
Issue: 1/2007

Behind the scenes, a lot of mechanical engineering goes into creating and maintaining a tropical rainforest near Lake Erie, just 40 miles from the Canadian border. It is a feat accomplished by Cleveland (Ohio) Metroparks, a recreational authority that provides an "emerald necklace" of woodlands, golf courses, hiking trails and other attractions surrounding this Midwestern city – known as much for its sports teams as its world-class orchestra and Rock 'n Roll Hall of Fame. Without state-of-the-art HVAC technology, it is doubtful this unique tropical habitat – located within the Cleveland Metroparks Zoo complex – could exist; and it continues to benefit from equipment improvements, such as advanced motor and drive design.


First opened in 1992, The RainForest at Cleveland Metroparks Zoo is a domed, simulated biosphere that contains some two acres of plants and wildlife, comparable to that found in tropical rainforests and jungles. Its air handling system, which includes half-ton heat wheels and ABB motors and drives, conserves 18,000 pounds of water a day from the facility by transferring the moisture to the dry, incoming fresh air every 2.5 hours.

The RainForest at Cleveland Metroparks Zoo contains two acres of plants and wildlife similar to that found in rainforests around the world. Each year, more than one million visitors come to this two-story, domed, simulated biosphere to experience what it is like walking through tropical regions of Central America, Africa or Asia – and see some 600 animals in a natural setting, including birds, monkeys, reptiles and colorful fish that play in lagoons, swamps and warm rivers.

A Fragile Environment in a Rugged Climate
Despite wide swings in temperature and humidity on the Great Lakes, where "Alberta Clipper" storms can swiftly deliver below-freezing temperatures in winter, and sun-drenched summer days top 90 degrees Fahrenheit, visitors and inhabitants of The RainForest enjoy a nearly constant 76 degrees F and 76 percent humidity. This is due to a robust HVAC system that has evolved over the years to incorporate components that have improved the system's reliability by 100 percent.

Not only does The RainForest, a $30 million investment, envelope visitors in exotic surroundings, but it also serves as a reminder of what is being lost – unless more rainforest and jungle acreage can be protected from overdevelopment.

Heat Wheel Application Critical to Constant Temperature and Humidity Control

Direct Air Systems Inc., with locations in Cleveland and Columbus, Ohio, working in conjunction with Zesco Inc., specialists in electrical-mechanical motion control and based in Cleveland, provide HVAC service to The RainForest, as well as other notable local sites, including the Rock 'n Roll Hall of Fame.

The RainForest has two air handler units that are100 percent outside air. To provide and maintain optimum environmental conditions for the facility, Direct Air Systems installed SEMCO energy wheel systems for the units, one of which has a throughout of 60,000 cubic feet per minute, used primarily for cooling; while the other unit, rated at 40,000 cfm, is equipped with a pre-heater and humidifier rack. Both units have side-by-side,10-foot-diameter, 1,000-pound dry desiccant heat wheels, which are necessary to conserve 18,000 pounds of water every day, transferring moisture from the RainForest's stale exhaust air and giving it to the dry outside air stream once every 2.5 hours.


Shown are two heat wheels, 10 feet in diameter, which are the means of moving moisture and heat from the RainForest facility and returning fresh air. They are turned at a rate of seven to 18 times a minute, using ABB motor/drive Direct Torque Control, which does not require a gearbox. Eliminating the gearbox greatly improved the air handling system's reliability.

The term "desiccant" refers to material bonded to the surface of the heat wheels that collects moisture, as well as odors, which are then exhausted out of the building via the upper portion of the wheels.

The wheels rotate anywhere from seven to 18 times a minute, depending on the humidity level. Fresh air, referred to as "process air," is drawn in on the bottom portion of the air handlers and filters through the wheels.

The fresh air's temperature and humidity are moderated by the wheels' slow revolution and the fact that the wheels' mass and desiccant surface transfers a portion of the heat and moisture collected from the interior. Heaters, when necessary, warm the air before it passes to The RainForest's spacious interior, which has more than 60 temperature zones, including those for offices, cafeteria, and gift shops.

Air Handling Units Built into Facility
Rather than being roof-mounted and exposed to the elements, as is commonly done with air handling units, the ones serving The RainForest are built into the facility to maintain unit efficiency that would otherwise be lost in Cleveland's warm summers and cold winters.

Efficiency and Simplicity Distinguish the System
The desiccant process was selected for both efficiency and simplicity. It was concluded that boilers, z-ducts, heat pipes or other methods did not compare to the 85 percent efficiency the heat wheels provide. Additionally, heat wheels are extremely simple to operate. The thinking was that the more simple the fundamental mechanical equipment, the greater the reliability and ease of maintenance. That proved to be the case – up to a point. While the technology should have worked flawlessly, a nagging problem developed.

Each wheel rotates with a custom fabricated 31-foot long belt and, when first installed, was equipped with a 1-horsepower AC electric motor rated for 1,750 rpm, and a mechanical gearbox to provide a 5:1 gear reduction.

At the time of installation, this was a fairly common equipment configuration. However, it was discovered that mechanical gearboxes used for The RainForest were failing at an alarming rate. Once a year, one of the gearboxes had to be replaced. There was no discernable pattern pointing to a particular wheel-and-gearbox arrangement. It was random. The only constant element in the problem was the routine failure of a gearbox.

The difficulty was finally identified. It dealt with the revolutions per minute. The pace was too slow for the gearboxes' splash lubricating systems to properly engage. As a result, parts were not being properly oiled and were wearing out prematurely.

Path to a Solution
Since the use of a gearbox was the common approach when the heat wheels were installed, the issue wasn't initially seen as one of equipment selection, but viewed as a problem of application. Each heat wheel installation is custom-made and has its own set of dynamics to contend with.

Solutions to the problem included continuing the practice of simply replacing gearboxes as they failed; however, it soon became obvious that this was expensive and somewhat unpredictable.

Also considered was using gearboxes that lubricate differently, as well as making customized gearboxes specific to The RainForest application. As more thought went into devising ways to handle the lubrication problem, it was concluded that these possibilities were bordering on experimentation. The RainForest, with its 600 animal inhabitants, was not a good candidate to take such risks, especially when a more up-to-date solution was available.

With Drives, no Gearboxes Required
Direct Air Systems thought about their experiences with other HVAC applications and mentioned to the Cleveland Metroparks Zoo maintenance team an AC drive/AC motor solution that didn't require gearboxes. This was becoming an increasingly common arrangement and had a good track record. It was also state-of-the-art technology, moving away from the problems and complexities that moving-parts mechanisms presented.

"When we saw we weren't getting too far with the gear-box-lubrication issue, we turned to equipment that was available to us – now," Steve Snyder, president of Direct Air Systems, explained. "The direct torque approach we recommended was something that would be cost-effective, easy to maintain and simple in its operation. Gear lubrication would not be an issue. Plus, direct torque is proven engineering. The Cleveland Metroparks sought bids for the project, as it is a public agency, and our bid was selected."

The retrofit involved ABB's Direct Torque Control solution, which uses the AC motor's torque as the primary control element.


Compact ABB ACS 800 drives, part of the ABB Direct Torque Control solution, require a much smaller footprint than earlier drive models. This is especially helpful in areas where space is limited.

The original 1-horsepower AC motor and gearbox equipment in each of the energy wheel systems was removed and replaced with an ABB 5-horsepower induction motor/AC low-voltage drive combination. This arrangement allows the motor to be connected directly to the motor/load without the need for a gearbox or pulse encoder. The ABB solution allows full motor torque down to zero speed.

Through the use of an algorithm, the ABB drives, in this case variable speed ACS models, can run without an encoder to provide speed feedback. The algorithm enables the drive to calculate the state of the motor's torque and flux 40,000 times per second. Elimination of the encoder further reduces maintenance and decreases downtime.

Although each energy wheel system is controlled by individual Johnson Controls systems, the status of the motors and drives is monitored by the RainForest's comprehensive Johnson Controls building management system.

In the event of a control failure, the ABB ACS drives are designed to go, automatically, to a pre-set rpm rate, to ensure heat transfer is maintained. Spare motors are inventoried at The RainForest and drives are kept at Direct Air Systems' office location, minutes away from the facility.

Since the installation of the ABB motor/drives combination more than four years ago, there has been no interruption in service. Direct Air Systems is seeing increasing use of direct torque control.

"It is definitely one of the approaches we recommend," Snyder explains. "Often there is more than one way to solve a problem. Based on the circumstances in this instance, the direct torque control method proved to be a good solution. We have applied it on other projects, as well. It has three characteristics we like. It's cost-effective, simple and reliable."

A Model for Saving the Rainforests of the World
Through contributions by visitors to The RainForest, and the efforts of other organizations and governments, limited amounts of scarce acreage of rainforests and jungles now are protected from overdevelopment. Continuing support will set aside even more of this valuable land that not only serves as a wildlife refuge for native plants and animals, but also improves the Earth's environment by taking carbon dioxide out of the atmosphere. Additionally, these protected areas are proving to be important sources for tomorrow's miracle medicines.


More than one million people a year visit The RainForest, enjoying a nearly constant 76 degree F/76 percent humidity environment maintained by the air handling system. Besides providing entertainment and education on biology, the facility's other mission is to remind visitors of the need to protect native rainforests, which are estimated as being lost at the rate of 1.5 acres a second to deforestation.

Featured on Animal Planet, The RainForest is one of several attractions at the Cleveland Metroparks Zoo which covers 168 acres and features the largest collection of primate species in North America among its 3,000 animals.

About the author:

ABB, Automation Products, Low-Voltage Drives, is the world's largest manufacturer of electric motors and drives. In the U.S.A., an integrated channel of sales representatives, distributors, and system integrators allow ABB, New Berlin, Wis., to supply a complete line of energy-efficient electric drives, motors and engineered drive systems to a wide range of industrial and commercial customers. Products manufactured include AC and DC variable speed drives for electric motors from 1/8th through 135,000 horsepower, and application-specific drive system solutions to meet diverse customer needs. For more information, visit www.abb.us/drives.com.

[waldron] 29/1/2007 10:33

SASREF, ABB Lummus in Deal on Sulfur Diesel Project - KSA



Arab News - 29/01/2007




(MENAFN - Arab News) DAMMAM, 29 January 2007 - Saudi Aramco Shell Refinery Co. (SASREF) and ABB Lummus, a Dutch company that focuses on the oil and gas, petroleum refining and petrochemical process industries, have signed a contract for front-end engineering development of SASREF's ultra-low sulfur diesel project at its headquarters in the Jubail Industrial City yesterday.

SASREF's President Muhammad Al-Omair signed the contract with Foeke Kolff, president-director of Lummus Global and Tareq Kawash, general manager of Lummus Saudi Arabia.

The engineering work will be carried out in ABB Lummus offices in The Hague and Lummus Ali Reza offices in Alkhobar will support activities in the Kingdom.

At the same time, SASREF appointed Shell Global Solutions to provide the project management support during this phase of the project development.

The new unit is planned for the pre-construction work in the second half of 2007 and start operations in 2009.

Muhammad Al-Omair said "the investment in this project is to reduce the sulfur content of the diesel fuel manufactured in SASREF by installing an ultra-low sulfur gas oil unit and revamping the existing gas oil de-sulfurizer to meet the new diesel specification."

SASREF's president added that after completion of the project, SASREF's capacity of ultra-low sulfur diesel will be 11,600 tons per day.

This will also make SASREF the first producer of the ULSD of 10ppm in the Kingdom.

[waldron] 24/1/2007 18:50

Updating with full report)

ZURICH (AFX) - Share prices closed higher helped by Wall Street's positive start and a rebound in heavyweight Novartis (nyse: NVS - news - people ), with Lonza also in demand after forecast-beating full-year results, dealers said.

At the close, the Swiss Market Index was 47.60 points higher at 9,153.10, and the Swiss Performance Index was 43.51 points up at 7,240.03.

The euro dropped against the Swiss franc to 1.6186 sfr, while the dollar rose to 1.2490 sfr.

After a late rally, the SMI managed to close near the day's best level, with buying interest underpinned by fresh demand for healthcare stocks and Lonza, a local trader said.

Lonza was the market's top performer, surging 5.4 pct or 5.90 sfr to 115.90, after the Swiss life science group reported expectation-beating full-year results and positive outlook.

Full year net reached 222 mln sfr, up 18.1 pct year-on-year, driven by an improved performance in its biopharmaceuticals activities.

EBIT increased 15.8 pct year-on-year to 344 mln sfr, while sales rose 15.6 pct to 2.914 bln sfr.

Analysts had forecast net profits of 210 mln sfr, EBIT of 332 mln sfr and sales of 2.769 bln sfr.

Chief executive Stefan Borgas said he expects results this year to beat Lonza's long-term guidance of 8-12 pct annual sales growth and EBIT growth in the mid to high teen percentage rate through to 2012.

ABB (nyse: ABB - news - people ) was another major gainer, rising 1.6 pct or 0.35 sfr to 22.30, as investors welcomed the EU Commission's decision to excempt the Swedish-Swiss engineering group from its record fine for the engineering industry for forming switch-gear cartel between 1988-2004.

The EU earlier today imposed fines totaling 750.7 mln eur against 11 companies, including a record fine of 418.7 mln against Siemens (nyse: SI - news - people ).

ABB was originally fined 215.2 mln eur, a 50 pct increase for being a repeat offender, but was eventually granted full immunity for acting as a whistleblower.

Selected healthcare stocks were also on the rise, with Novartis climbing 0.80 sfr or 1.1 pct to 72.60, continuing its rebound after last week's disappointing full year results.

The pharma group also announced earlier today that its Lucentis drug against wet age-related macular degeneration (AMD) has been granted EU approval.

Elsewhere in the sector, Nobel Biocare was another notable outperformer, adding 10.50 sfr or 2.6 pct to 415.25.

Roche added 1.10 sfr to 236.10, after saying its Actemra treatment has met its primary endpoint in a Phase III study with patients with moderate to severe rheumatoid arthritis (RA) who had an inadequate response to treatment with methotrexate.

Fellow heavyweight Nestle eased 0.75 sfr to 443.75.

In the banking sector, UBS gained 0.65 sfr to 77.40, while Credit Suisse climbed 0.90 sfr to 88.20.


[e-mail]

at/lam

[waldron] 24/1/2007 12:55

Abb EU fines 11 companies 750.7 mln eur for switchgear cartel activity UPDATE


(Updates with further detail)
BRUSSELS (AFX) - The European Commission said it has fined 11 companies a
total of 750.7 mln eur for participation in a cartel for gas insulated
switchgear projects between 1988 and 2004.
The set of fines is the largest ever imposed on a single cartel.
The companies involved are Siemens AG, ABB Ltd, Alstom, Areva, Fuji Co,
Hitachi Japan AE Power Systems, Mitsubishi Electric Corp, Schneider Electric,
Toshiba Corp and VA Tech.
The commission said the companies rigged bids for procurement contracts,
fixed prices, allocated projects to each other, shared markets and exchanged
commercially important and confidential information.
The largest fine, of 418.7 mln eur, was imposed on Siemens -- the amount
included 22.1 mln following the group's acquisition of VA Tech. This is the
largest fine ever imposed by the EU executive on a single company for a single
cartel infringement.
ABB was fined 215.2 mln eur, Alstom 65.0 mln, Areva 53.6 mln, Fuji 3.8 mln,
Hitachi 51.2 mln, Japan AE Power Systems 1.4 mln, Mitsubishi Electric Corp 118.5
mln, Schneider 8.1 mln, and Toshiba 90.9 mln.
ABB, whose fine was increased by 50 pct for being a repeat offender, was
however eventually granted full immunity by acting as cartel whistleblower.
The commission increased the fines by 50 pct for Siemens, Alstom and Areva
for their "leadership role" in the cartel.
Areva is liable for the four-month period after its purchase of an Alstom
unit in January 2004 until the end of the cartel.
"There is a presumption that a parent company exercises decisive influence
over its wholly owned subsidiary," it said.
EU competition commissioner Neelie Kroes said: "The commission has put an
end to a cartel which has cheated public utility companies and consumers for
more than 16 years."
Gas insulated switchgear (GIS) is heavy electrical equipment used to control
energy flows in electricity grids, and is the major component of turnkey power
substations.
Substations are auxiliary power stations where electrical current is
converted from high to low voltage or the reverse.
GIS is sold both as an item of equipment to be integrated into a turnkey
power substation and as an integral part of turnkey power substations.
From at least 1988, when a written agreement between the members was
adopted, suppliers informed each other of calls for tender for GIS and
co-ordinated their bids in order to secure projects for the cartel members or to
agree minimum bidding prices.
The companies agreed that the Japanese companies would not sell in Europe,
and the European companies would not sell in Japan.
European tenders were usually allocated according to the cartel rules and
the European projects won by cartel members outside their home countries were
counted into the agreed global cartel quotas.
The commission therefore said that the Japanese companies have also been
fined, despite "their nearly total absence" from the market for GIS in Europe,
because their agreement to abstain from bidding "contributed directly to the
restriction of competition" on the EU market.
It added that the companies met regularly at the management level to discuss
strategic issues, and at a lower level to divide projects and to prepare "sham
bids" by the companies not supposed to win tenders.
It also said the companies took "sophisticated measures" to keep their
communications secret. Code names were used for both companies and individuals.
In the last years of the cartel they relied on anonymous e-mail addresses for
communication and used encryption for sending messages, said the commission.


[e-mail]
sz/tw/sz/tw

[waldron] 24/1/2007 12:44

Abb EU says Siemens' record fine due to size, market share; confident of legal basis


BRUSSELS (AFX) - The European Commission said the record fine it imposed on
Siemens AG for participation in a switchgear cartel between 1988 and 2004 was
due to the company's size and market share.
Siemens was fined a total of 418.7 mln eur -- which included a sanction of
22.1 mln following the group's acquisition of VA Tech.
It is the largest fine ever imposed by the EU executive on a single company
for a single cartel infringement.
Siemens responded by saying it plans to appeal at the EU courts over the
fine, calling it "completely exaggerated".
The EU executive added that it is "sure" of the legal basis of its decision
to impose fines, which totaled 750.7 mln against 11 companies.
ABB was fined 215.2 mln eur, Alstom 65.0 mln, Areva 53.6 mln, Fuji 3.8 mln,
Hitachi 51.2 mln, Japan AE Power Systems 1.4 mln, Mitsubishi Electric Corp 118.5
mln, Schneider 8.1 mln, and Toshiba 90.9 mln.
ABB, whose fine was increased by 50 pct for being a repeat offender, was
however eventually granted full immunity by acting as cartel whistleblower.


[e-mail]
sz/har

[waldron] 24/1/2007 08:11

Schneider Electric EU to impose 400 mln eur cartel fine on Siemens for price fixing - report


FRANKFURT (AFX) - Siemens AG is facing a 400 mln eur EU cartel fine, daily
Handelsblatt reported without saying where it obtained the information.
According to the report Siemens Austrian unit VA Tech was allegedly part of
a cartel that fixed prices for switchgears.
It added that the fine to be imposed on Siemens is the second highest the EU
ever issued.
The report also said that other companies such as ABB, Schneider, Alstom,
Areva, Hitachi and Mitsubishi are also facing fines of up to 100 mln eur each in
the case.

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jcs/jfr

[ariane] 19/1/2007 17:29

January 19, 2007
Shanghai Bribery Inquiry Ensnares Big Firms
By DAVID BARBOZA
SHANGHAI, Jan. 19 - The Shanghai police have detained 22 people in a bribery investigation that has ensnared some of the world's biggest companies, including McDonalds, Whirlpool, McKinsey and ABB, according to reports in the state-run news media.

The government did not announce formal charges, disclose who was detained or offer a full list of the companies involved. But the news reports said today that the bribes in the case totaled about $500,000, and that some of the people detained were "company directors and senior employees."

The detentions seem to be part of a broader anti-corruption drive that has been sweeping China over the past few years, toppling dozens of wealthy businessmen and high-level government officials, including Chen Liangyu, who was the Shanghai party secretary and a member of the ruling politburo until his arrest last September.

But the cases announced today did not appear to involve bribes to government officials; rather, they seemed to be about bribes or kickbacks to win business contracts, a practice believed to be widespread in China.

American and European executives have complained for years that they have to carefully supervise local employees, and occasionally battle them, because marketing deals in China so often involve kickbacks or bribes.

None of the American or European companies named in the press reports today could offer much detail on the detentions in Shanghai.

A spokesman for McKinsey & Company, the giant global business consultancy, said the company has not been accused of any crime and that it is looking into the matter.

But one McKinsey employee, who asked not to be named, acknowledged that two people in the firm's computer procurement division were accused of accepting bribes and were detained last May.

Thomas Schmidt, a spokesman for ABB, the Swiss-Swedish builder of power generation and distribution equipment, said in a telephone interview today that he could not confirm that anyone from his company had been detained in Shanghai. He said ABB was looking into the allegations of improper conduct.

Shanghai-based officials at McDonald's and Whirlpool could not be reached for comment on the matter Friday evening.

A spokeswoman for the United States Embassy in Beijing said that the embassy was not aware of any Americans being detained in the case.

One American company official, who also asked not to be named, complained that big multinational companies were being "picked on" by the Chinese government, even though commercial corruption is widespread and perhaps much more prevalent among Chinese companies.

Still, several multinational companies have been embarrassed in recent months by turning up in corruption cases.

One matter that attracted considerable attention last year involved the former head of one of China's biggest state-owned banks, China Construction Bank, who was sentenced to 15 years in prison for accepting over $500,000 in bribes.

Court documents said that a "middle man" who worked on behald of I.B.M., NCR and Hitachi collected fees from the several of those companies and passed the money on to Mr. Zhang while Mr. Zhang was chairman of the bank.

None of the multinational companies was accused by the government of wrongdoing in that matter.

In their announcement, the police in Shanghai said that seven companies and 22 workers were being investigated, according to Shanghai Daily, one of the newspapers that reported on the case today.

The paper also reported that the case turned on bribes or kickbacks paid to company executives in exchange for equipment orders.

The paper said that the two local computer company officials had confessed to police that they offered $57,000 in bribes to two McKinsey employees. The police investigation found that the two had collected a total of about $250,000 in bribes from four computer-network companies between 2003 and 2006.

[ariane] 19/1/2007 17:00

Abb EU to fine suspected cartel in power generation equipment - sources


- The European Commission is expected on Wednesday to fine companies
involved in a suspected cartel in power generation equipment, sources told
Agence France-Presse on Friday.
Although the amount of the total fine to be lodged against the firms involved
is not to be decided until the last minute, it could in theory reach 10 pct of
annual sales.
Among the companies facing possible action are French groups Schneider
Electric, Alstom, and Areva, German conglomerate Siemens AG, Swiss-Swedish
engineering group ABB, Austrian group VA Tech and Japanese companies Mitsubishi
Corp, Hitachi and Toshiba Corp.
Acting on a tip-off, regulators conducted raids on the groups' premises in
May 2004. Two years later, the EU competition watchdog took the final step
before official sanctions against them by issuing statements of objections.
The European Commission suspects that the companies may have jointly fixed
prices and carved up the market among themselves for gas-insulated switchgear,
used to control the flow of electricity at power sub-stations.
Originally, the EU competition watchdog was to impose fines before Christmas
holidays but ended up postponing its action.

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afp/sz/ava

[waldron] 15/1/2007 15:29

cheers She

[sheeneqa] 15/1/2007 13:48

ABB wins $42-million power order in India
Zurich, Switzerland, January 15, 2007 – ABB, the leading power and automation technology group, has won a $42-million contract from the main electricity transmission company in the Indian state of Karnataka for a system to monitor and control the network.

KPTCL is owned by the government of Karnataka and serves about 11 million customers in the southern Indian state. The project scope includes design, engineering, installation, testing, commissioning and service. It is scheduled for completion in about 24 months.