Abb Share Discussion Threads

[sheeneqa] 17/3/2008 14:47

The company I have my eye on is the largest builder of power networks in the world. But that's not the point. It also provides essential services and equipment. Without them, ExxonMobil couldn't get off the ground. Here's why...

This company has cornered the market on a new transformer that's safer than anything currently available. It can be used in all kinds of oil and gas applications: furnace control, surface measurement, offshore installations – you name it.

In fact, it's the first and only transformer in the whole world that has a near zero failure rate – 0.001.

How much do you think companies like PetroChina or ExxonMobil would pay to have this ultra-safe technology working for them? Well, judge for yourself...

The Chinese government just spent $440 million with this company to build a high-voltage electricity line.

It will be the largest power link on the planet. It spans 1,240 miles, running from Xiangjiaba dam in the west to Shanghai in the east. Without it, Shanghai's mighty industries would grind to a screeching halt.

Besides being the longest transmission line in the world, the link will operate at twice the capacity of any power generator in operation today. This represents the biggest breakthrough in capacity and efficiency in 20 years.

Imagine that – thanks to the unique technology of this company, China will be able to double its power capacity in a short time!
With China's construction industry on steroids, how important do you think this company is to them?

Because it owns a one-of-a-kind proprietary technology that's literally worth billions, this company has won contracts up the wazoo...
Chile just spent $35 million with it to acquire gearless mill drives for their natural resources operations.


Italy gladly forked over $86 million to have this company design and construct a new oil processing plant in an offshore field.


Spain just contracted to have Europe's first large-scale solar energy plant built.
This is just the beginning. There are more contracts coming down the pipeline than I can list here – over 27 new contracts worth over half a billion dollars.

Investors who wait for the next PetroChina – the next "big thing" – will leave a lot of money on the table. I see this company poised to hand investors 500% in the next 12 months.

You can learn the name of this winning company and get the complete story in my new wealth-building report called The Power Money Builder. It's valued at $45, but it's yours FREE with a trial membership in The Money Map Report.

[waldron] 14/3/2008 09:14

ABB powers up China biz with $100m
By Li Fangfang (China Daily)
Updated: 2008-03-14 09:27


ABB will add more than $100 million in investments in China this year.


The money will be used to "support the expansion of research and development, manufacturing, sales and engineering services across the complete power and automation product portfolio in China", ABB CEO and CFO Michel Demar said yesterday.


The proposed investment by the leading global power and automation technology group comes on the heels of the Switzerland-based company's sharp increase in investments by another $100 million in its 25 local companies last year. Together, it's already double the company's original plan of injecting $100 million in its Chinese operation between 2004 and 2008.


Having established its office in Beijing in 1979, ABB has so far invested over $820 million in China.


Sustained investment and growth have made China the country where ABB has the maximum number of employees and generates the highest orders and revenues.


"ABB's business in China hit a milestone last year and is now the largest within the group by most measures," said Demar. "China has been the most important market for ABB in all aspects."


ABB said China accounted for 12 percent of its total orders of $34 billion in 2007, ahead of Germany and the US.


"The orders increased 32 percent to $4.1 billion from $3.1 billion in 2006 while revenues rose 20 percent to $3.4 billion from $2.8 billion as ABB continued to introduce its latest technologies to the country," said Brice Koch, chairman and president of ABB China.


"In 2007, these included the high-voltage direct current transmission systems, lightweight and versatile robots, and energy-efficient motor and drive systems."


ABB also accelerated the pace of recruitment in China last year to meet the needs of a rapidly growing business. The number of employees rose by 1,500, or 14 percent, to 12,800, compared with an annual average increase of 1,000 in the past few years.


"Our comprehensive footprint in China and our leading-edge technology are meeting customers' increasing needs for power grid reliability, industrial productivity and energy efficiency," said Koch.


China has also become one of the key sources of materials used in manufacturing by the ABB group. In 2007, ABB's purchases in China crossed $2 billion.


Eleven local ABB companies ranked among China's top 100 electrical enterprises in 2007.

[waldron] 09/3/2008 19:54

Emerson Electric: Perfect for a Market Downturn
posted on: March 09, 2008 | about stocks: EMR Font Size: PrintEmail I like stocks that are consistent performers, especially in a downturn. That is why I am looking at Emerson Electric (EMR). Emerson is a diversified blue chip with a market cap of $41 billion. It's the world's leading maker of power equipment for oil companies, and its businesses include automation systems, climate control, power technology, and electric motors. Recently, EMR posted another stellar quarter: sales were up 12%, and earnings per share 20% over last year (see conference call transcript). So far, so good, but let's dig deeper.

On Emerson's balance sheet, long-term debt is only 15% of total assets ($20.8 billion), and is declining. Inventory levels are stable and the quick ratio is a respectable 1.01. Free cash flow (cash from operations less capital expenditures) was $2.3 billion in 2007 and is rising. This "after-all-bills" cash was used to buy back shares and acquire Motorola's (MOT) communications computing business.

Over the last five years, Emerson's net income has increased an average of 18% and management has cut operating expenses from 22% to 21% of sales. With $22.6 billion in revenues, that's a huge savings. Return on equity [ROE], a measure of profitability, was 25% last year; look how this stacks up against the competition




Only ABB (ABB), a Swiss company, had higher ROE. But this comes at a significantly higher price, 22 times earnings, and a lower dividend. Historically, over one-third of investor returns come from dividends; EMR has increased its payout annually for 51 years.

What about international operations?



Emerson has a presence in 150 countries with major operations in Brazil, Russia, India, China, and Dubai. International sales are 54% of revenues, and management expects this will increase.

Emerson's CEO is David Farr, just named one of the "Best CEOs in America" by Institutional Investor Magazine for "positioning his company to withstand more difficult times ahead." Top management, top returns. And even though Emerson's shares have increased 125% over the last five years, insiders think they're a good buy. A couple weeks ago, director August Busch bought $2.1 million worth at $50.41 a share.

I think EMR is attractively priced at that level. A discounted cash flow, using earnings per share of $3.10, 15% growth the next three years and a 10% discount rate, generated a value of $53. The current price is about $53, so the stock is fairly valued; however, any further market downturns present an opportunity to buy this excellent stock at a sensible price.

Disclosure: The author does not presently own EMR stock

[waldron] 24/2/2008 16:48

Schneider Electric to boost production capacity in emerging markets
Date : 24/02/2008 @ 16:16
Source : TFN


Schneider Electric to boost production capacity in emerging markets




PARIS (Thomson Financial) - Schneider Electric CEO Jean-Pascal Tricoire said
the group, which currently exports goods from mature markets to emerging
markets, will continue to increase production in emerging markets to match their
increasing demand.
In an interview with Investir, Tricoire said he "sees no reason for raw
material prices to stop increasing."
The group will continue to work on finding a balance between the increase in
raw material prices, improvements in productivity within the company and its
capacity to raise prices, Tricoire said.
Tricoire said that, following the acquisitions of APC and Pelco, the group's
priority is "the integration of the two businesses, and improving our
profitability. That does not rule out reasonable external growth operations."
Tricoire declined to comment on rumours that ABB Ltd is interested in
launching a takeover bid for the group.
[e-mail]
hem/vs

[waldron] 18/2/2008 17:41

ABB "neutral," target price reduced
7:08a.m. - J.P. Morgan Securities
LONDON February 18 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on ABB Ltd (ABBN), while reducing their estimates for the company. The target price has been reduced from CHF35 to CHF33.50.

In a research note published this morning, the analysts mention that going forward, the company is expected to make several acquisitions, which it will fund by using debt and equity. ABB is expected to benefit from the acquisitions, if it uses its financial strength to boost its overall position in the North American and South American Industrial markets, the analysts say. The EPS estimates for 2008 and 2009 have been reduced by 1% and 3%, respectively, to reflect currency effects and marginally lower growth.

[waldron] 17/2/2008 16:42

ABB interim CEO says company can afford acquisition of up to 12 bln usd
Date : 17/02/2008 @ 16:24
Source : TFN


ABB interim CEO says company can afford acquisition of up to 12 bln usd




ZURICH (Thomson Financial) - ABB Ltd interim chief executive Michel Demare
said the Swiss-Swedish engineering group could afford an acquisition worth up to
10-12 bln usd.
In an interview with Swiss Sunday newspaper Sonntag, he said the group has
"a lot of cash". "It is unfavourable in the long-term to sit on such a huge
mountain of cash. I can imagine one day, someone standing before our door
because he finds our cash holdings attractive," he said.
Demare, who took over as inteirm CEO after the sudden departure of Fred
Kindle, said: "We practically crossed each other, he (Kindle) was coming out of
the board meeting room, and I was going in. We didn't have time to talk about
it."
Asked if he would be interested in keeping the job permanently, Demare said
he needs time to discuss it with the board.
"Then I will see what the expectations are and what kind of profile they are
seeking," he said.
[e-mail]
hmn/wj

[ariane] 14/2/2008 11:52

ABB sees improved acquisition conditions - CEO
Date : 14/02/2008 @ 11:47
Source : TFN


ABB sees improved acquisition conditions - CEO




ZURICH (Thomson Financial) - ABB Ltd sees improved conditions for a large
acquisition, interim chief executive CEO Michel Demare told Thomson Financial
News partner AWP.
"The conditions are improving," Demare said, citing a further improved cash
position for the Swedish-Swiss engineering group as well as declining prices for
potential targets.
Demare put the price for a potential mega-deal at a double-digit billion
figure.
He declined to comment on whether he can imagine remaining the head of
group.
"I have not had any time to think about that. I have only been CEO for 36
hours," he said.
Demare was named interim chief executive after yesterday's surprise
departure of Fred Kindle due to "irreconcilable differences" over how to lead
the company.
[e-mail]
jmt/ak

[ariane] 14/2/2008 10:20

ABB plans gradual hike of dividend payments
Date : 14/02/2008 @ 09:45
Source : TFN


ABB plans gradual hike of dividend payments




ZURICH (Thomson Financial) - ABB Ltd plans a gradual hike of its dividend
payments to shareholders, the Swedish-Swiss group said in a presentation
accompanying its full year results media conference.
At the same time, ABB plans to keep its financial flexibility to finance
internal and external growth while maintaining its investment grade rating.
The group issued a positive outlook for 2008, but said bottle necks in raw
materials as well as staff recruitment might hamper investment activities.
ABB also expects growth in the construction-related industries to remain
limited.
However, ABB said the group's operational improvements as well as the strong
order books offer a strong buffer against possible economic downturn.
[e-mail]
jmt/jfr

[ariane] 14/2/2008 07:31

ABB Says Power Units to Drive Sales Growth in 2008 (Update1)

By Antonio Ligi

Feb. 14 (Bloomberg) -- ABB Ltd., which lost its chief executive yesterday over a strategy clash, forecast sales growth of as much as 20 percent at power-related divisions this year as demand for equipment to expand electricity grids remains ``buoyant.''

Automation units, supplying motors and drives, should increase revenue by about 10 percent, Zurich-based ABB, the No. 1 maker of power networks, said today in a statement.

The Swiss company said yesterday it's looking for a new CEO to replace Fred Kindle and would be ``ready to move'' on a large acquisition. It posted record annual profit of $3.8 billion in 2007 and has accumulated $5.4 billion in cash. ABB didn't specify why Kindle left, though with the last major acquisition dating to 2001, Chairman Hubertus Von Gruenberg may want a more ``proactive approach,'' said Dresdner Kleinwort analyst James Stettler.

The exit of Kindle ``brings uncertainty to the company and is likely to result in a slowdown in the strategic decision- making process, although there is plenty of potential to continue growing organically for a few more years,'' said Helvea analyst Alessandro Migliorini.

ABB, based in Zurich, dropped 5.1 percent yesterday to 26.04 Swiss francs. That pared its market value to 60 billion francs.

Asian Power Needs

Fourth-quarter profit surged to $1.8 billion from $422 million, boosted by a gain from the sale of energy services unit Lummus Global, the company reported yesterday in a preliminary earnings statement, released one day ahead of schedule. Sales rose to $8.7 billion from $6.9 billion. ABB plans to pay a dividend of 48 centimes a share.

``Demand is forecast to be driven in Europe and North America by the need for equipment replacement, improved grid reliability and efficiency and further grid interconnections,'' the company said today in a detailed earnings release. The need for new power infrastructure will boost demand in Asia and the Middle East and Africa, it said.

ABB last week won a contract worth $71 million from Power Grid Corp. of India Ltd. to develop electricity substations. That followed a $25 million order from Vietnam Cement Industry Corp. for power and automation equipment.

India's government aims to spend $149 billion by 2012 to boost generation and upgrade transmission and distribution networks as it loses 2 percentage points from annual growth each year because of inadequate power and transportation networks. About 400 million Indians do not have access to electricity, according to the United Nations' Human Development Report of 2007.

China has similar needs as the economy expanded 11.4 percent last year, spurring demand for electricity to run factories, homes and offices. The nation's power consumption rose 14.4 percent in 2007, according to the China Electricity Council.

Margins Improve

The Swiss company's results mirror order growth at other global equipment suppliers that are benefiting from spending on infrastructure, including General Electric Co., the world's biggest maker of power generators. GE's profit rose 15 percent on higher international sales of jet engines and power-plant turbines, drawing more than half its annual revenue from overseas for the first time as the U.S. economy slowed.

Power products and systems units generated about 55 percent of ABB's total sales in 2007. The automation products unit was the most profitable, widening its operating margin to 17.1 percent from 15.4 percent. Robotics was the worst performing, with a margin of 5.6 percent.

ABB yesterday reiterated forecasts for annual earnings growth of at least 15 percent through 2011. It raised its profit margin target to between 11 percent and 16 percent.

Formed in 1988 through the merger of BBC Brown Boveri of Switzerland and ASEA AB of Sweden, ABB makes components and systems to transmit and distribute electricity, motors and generators as well as robots. Its workforce has shrunk to about 111,000 from a peak of 219,000 in mid-1998 as units including paper-making equipment and water treatment were jettisoned.

To contact the reporter on this story: Antonio Ligi in Zurich at [e-mail]

Last Updated: February 14, 2008 02:15 EST

[ariane] 14/2/2008 07:17

ABB sees continued strong run in 2008, confirms strategy
Date : 14/02/2008 @ 07:14
Source : TFN


ABB sees continued strong run in 2008, confirms strategy




ZURICH (Thomson Financial) - ABB Ltd said it expects the global market for
power transmission and distribution infrastructure to remain buoyant in 2008.
The Swedish-Swiss engineering group forecasts growth rates in 2008 of about
15-20 pct for its power-related activities and about 10 pct in its automation
activities, it said.
Demand in emerging economies is expected to remain strong driven by high
commodity prices and the need for greater energy efficiency and process quality.
However, ABB warned it could see a dampening of demand amid slower overall
economic growth in mature economies.
The group also confirmed its earlier published 2007-2011 targets.
Yesterday, ABB released full year and fourth quarter results one day ahead
of schedule along with the surprise exit of chief executive Fred Kindle.
The news of Kindle's departure sparked a heavy sell-off with ABB closing 5.1
pct lower yesterday.
However, ABB showed a strong performance throughout 2007 with fourth quarter
net profit jumping to 1.8 bln usd from 422 mln one year ago boosted by a gain on
the sale of ABB Lummus Global of 530 mln usd and a positive impact of 475 mln
usd from the recognition of deferred tax assets.
[e-mail]
jmt/cw

[ariane] 13/2/2008 11:54

February 13, 2008 - 8:51 AM
Fred Kindle in surprise departure from ABB
Image caption: Fred Kindle is credited with having a huge influence on ABB's turnaround (Keystone)Zurich-based engineering group ABB has announced the sudden departure of its chief executive Fred Kindle owing to differences of opinion about leadership.
The surprise move came as the group announced very strong full-year results a day early. Full year net income for 2007 more than doubled to SFr4.18 billion ($3.8 billion) compared with SFr1.54 billion in 2006.

Kindle, who was named Swiss Entrepreneur of the Year last December, joined the company in 2004 and took over as president and CEO in 2005. He oversaw a period of strong growth and return to profitability at ABB.

"Fred Kindle is leaving the company due to irreconcilable differences of opinion about how to lead the company," the group said in a statement.

However the board said it fully supported the strategic targets announced by Kindle in September 2007 and was confident in the executive committee's ability to drive the strategy forward.

Chief financial officer Michel Demaré has been named interim CEO. The board will "immediately" begin the search for a successor for Kindle, ABB said.

Tribute
The chairman of the ABB board Hubertus von Grünberg paid tribute to Kindle's work. "The board is very thankful to Fred Kindle for driving the company to the extraordinary level of performance it achieved over the past three years.

"He successfully streamlined and strengthened the company's operations around the world. Under his leadership, ABB today is a leading company in respect of growth, profitability and business ethics," von Grünberg added.

Some reports say that Kindle's greatest differences on the future strategy of the company were with von Grünberg, who had reportedly fought with executives at other companies in the past.

However, von Grünberg denied that Kindle's departure resulted from a clash of egos. During a conference call with journalists he also ruled out disgreements over acquisition or share buyback strategy, despite Kindle's notoriously conservative approach.

"There was no board clash with Kindle over what to pursue," von Grünberg declared.

The conference call failed to shed any light on Kindle's shock departure. Von Grünberg said he was "miserable" when he got out of bed this morning knowing he would not be able to provide answers, but called for patience.

He was adamant, however, that there were no skeletons lurking in the closet surrounding Kindle's short reign.

"There is no ugly thing associated with Mr Kindle's departure. Mr Kindle is a highly ethical person and the board had total trust in him. There is nothing lurking in the bushes," he said.

Strong results
ABB's surprise decision to announce its headline results a day before the scheduled annual report showed the company remained in robust health.

The dramatic leap in profits from SFr1.54 billion to SFr4.18 billion includes a gain on the sale of ABB Lummus Global of SFr584 million and a positive impact of SFr523 million from the recognition of deferred tax assets.

The ABB board will propose a dividend of SFr0.48 per share to the annual general meeting on May 8.

The company said it had decided to start a share buyback programme up to a maximum value of SFr2.2 billion.

ABB will report its complete 2007 results and hold media and analyst briefings on Thursday, as scheduled.

swissinfo with agencies

ABOUT ABBABB specialises in heavy industrial electrical switches, transformers, generators, circuit breakers, cables and related software and communications systems.

Such products are typically used by power plants, oil and gas companies.

ABB operates in about 100 countries and employs more than 110,000 people.

--------------------------------------------------------------------------------

FRED KINDLEKindle, born in 1959, is a joint Swiss/Liechtenstein citizen. He joined ABB in 2004 and became president and CEO in January 2005.

He started his professional career as a consultant with McKinsey in New York and Zurich and also worked with the technology company Hilti.

He then took a job with Sulzer in 1992. He became CEO in 2001 and led the company through a period of change.

--------------------------------------------------------------------------------

LINKSABB (
ABB share price (

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URL of this story:

[ariane] 13/2/2008 07:48

Swiss shares TFN at a glance outlook
Date : 13/02/2008 @ 07:33
Source : TFN


Swiss shares TFN at a glance outlook




ZURICH (Thomson Financial) - Shares are expected to open lower as investors
take profit after yesterday's late rally.
In prebourse trade the Swiss Market Index was down 53.97 points to 7,492.46.
Yesterday, the Swiss Market Index closed up 199.39 points or 2.7 pct at
7,546.89 while the Swiss Performance Index was also 155.74 points or 2.6 pct
higher at 6,165.28.

FORTHCOMING EVENTS

TODAY
-none

TOMORROW
-ABB FY results
-Zurich Financial FY results
-Clariant FY results
-UBS FY results
-HBM Bioventures listing on SWX
-Credit Suisse/ZEW February economic indicator

TODAY'S PRESS
-none

COMPANY NEWS
-ABB CEO Kindle leaves group due to 'irreconcilable differences'; FY net up
-ABB FY net 3.8 bln usd, sales 29.2 bln usd
-ABB to pay FY 2007 div of 0.48 sfr/shr vs year-earlier 0.24 sfr
-ABB to launch share buyback programme of up to 2.2 bln sfr
-ABB Q4 EBIT 1.1 bln usd, FY 4.0 bln
-ABB CEO Kindle to leave company due to 'irreconcilable differences'
-Genentech: Avado Phase III study of Avastin for breast cancer meets
endpoint
-Julius Baer plans IPO for its U.S. asset management business
-Julius Baer to IPO its US asset management business
-Julius Baer to list Julius Baer Americas on NYSE
-Julius Baer expects offering to be completed during 2008

MACROECONOMIC NEWS
-none

MARKET NEWS
-EFG International upped to 'neutral' vs 'sell' at UBS
-Vontobel cut to 'sell' vs 'neutral' at UBS
[e-mail]
jmt/lam/at/jmt/jmt/hmn/ajb

[ariane] 13/2/2008 06:52

ABB CEO Kindle leaves group due to 'irreconcilable differences'; FY net up
Date : 13/02/2008 @ 06:46
Source : TFN


ABB CEO Kindle leaves group due to 'irreconcilable differences'; FY net up




ZURICH (Thomson Financial) - ABB Ltd said its chief executive Fred Kindle is
leaving the company due to "irreconcilable differences" on how to lead the
company.
Chief Financial Officer Michel Demare takes over as interim CEO.
The Swedish-Swiss engineering group's board added that the search for a
successor will start immediately.
In addition, ABB announced its full-year and fourth quarter results ahead of
the scheduled release tomorrow.
It said net income in the fourth quarter reached 1.8 bln usd, including a
gain on the sale of ABB Lummus Global of 530 mln usd and a positive impact of
475 mln usd from the recognition of deferred tax assets.
Fourth quarter EBIT reached 1.1 bln usd, with the margin increasing to 13.1
pct from 11.1 pct a year ago.
For the full year, EBIT reached 4 bln usd, with a margin of 13.8 pct.
Full-year 2007 net income reached 3.8 bln usd compared with 1.4 bln usd in
2006, and beating analysts' forecasts.
Analysts had expected 2007 net to reach 2.846-3.789 bln usd, or an average
of 3.132 bln usd, over double the 1.390 bln usd posted a year ago.
The group's board added that it will propose a dividend of 0.48 sfr per
share to the annual general meeting on May 8, 2008.
In addition, the group will start a share buyback programme of up to a
maximum value of 2.2 bln sfr.
[e-mail]
hmn/lam

[ariane] 11/2/2008 12:08

source:FT


Optimistic engineers
Published: February 11 2008 09:40 | Last updated: February 11 2008 09:40

Why is ABB special? The European capital goods sector has had a poor few months in share price terms as the sector as a whole has de-rated. But while ABB shares have lost a quarter of their value in three months, they remain highly prized, trading on 19 times this year's earnings to the broader sector's sub-12 multiple.

The attraction is power. Around 45 per cent of ABB's sales are in power transmission, with another fifth related to the mining and energy sector. Structural underspending on power networks over the last 30 years, particularly in the US, should mean many years of work ahead. The recent approval of transmission corridors – areas where individual states cannot object to the laying of new power lines – should also speed the process.

Across the Atlantic the European Commission's desire for more energy trading between countries is likely to see spending on inter-country connections increase. And the renewable power sources into which so much is being invested need connecting to transmission grids. In Asia, meanwhile, rising demand for reliable power supplies continues apace: China's investment in its power grid should rise from $34bn last year to $48bn in 2010.

However, unlike Alstom, which is exposed purely to power generation and rail infrastructure, the remaining quarter of ABB's business is automation technology for industry. This is just as vulnerable as making ball bearings or machine tools if industrial capital spending falls.

But while a slowdown is much anticipated by ABB's and other share prices, it has yet to show up in reported numbers from Swedish bellwethers Sandvik and SKF. Similarly Schneider Electric's main American competitor Eaton forecasts sales to be up 5-6 per cent this year, and underlined its confidence with a dividend hike. Schneider itself is exposed to the ongoing, and likely long-lasting drive by governments and companies to improve energy efficiency, and survived the last recession relatively unscathed. If the reporting season continues to pass without unpleasant surprises, some of the pessimism may have to be reassessed.

[waldron] 08/2/2008 13:24

ABB wins orders worth about 71 mln usd from Powergrid Corp of India
Date : 08/02/2008 @ 13:07
Source : TFN


ABB wins orders worth about 71 mln usd from Powergrid Corp of India




ZURICH (Thomson Financial) - ABB Ltd said it has won orders worth about 71
mln usd from Powergrid Corp of India Ltd, India's national transmission utility,
to help strengthen that country's transmission network.
The Swedish-Swiss engineering group said it will supply solutions and a
range of power products for substations around the country. Some of the orders
were booked at the end of 2007, ABB said.

[e-mail]
at/am

[waldron] 06/2/2008 11:10

Alstom unveils new high-speed train
By Robert Wright, Transport Correspondent, in La Rochelle

Published: February 5 2008 11:08 | Last updated: February 5 2008 11:08

The company behind France's flagship TGV train has taken its biggest technological leap forward in 30 years by unveiling on Tuesday a radical new design of high-speed train designed to cruise at 360kph (224mph).

The AGV – Automotrice Grand Vitesse (high-speed rail car) – will be the first French-built high-speed train to break with the train á grand vitesse (high-speed train) design pioneered on France's first dedicated high-speed route, from Paris to Lyons, opened in 1981.

EDITOR'S CHOICE
Unified system slows high-speed railways - Jan-04Showcase train project 'too complex' - Jan-03Cross-Channel freight trains set to double - Nov-27Eurotunnel cuts rail freight charges - Oct-24Railroads' US revival entices investors - Nov-12US rail chiefs say new laws will halt investment - Nov-12The new train, which is built by Alstom, has motors distributed on passenger coaches, rather than concentrated in power cars full of equipment at either end of the train. This system, known as distributed power, reduces the weight of the train's heaviest vehicles and increases the space available for passengers.

The new design should enable Alstom to compete better in export markets against Siemens' Velaro design, based on Germany's ICE3 high-speed train, which already uses distributed power and has won recent orders in Spain and Russia.

The TGV previously won a number of export orders, with trains going to Spain for its first high-speed lines and Korea, where the train is known as KTX. Orders are pending from Morocco and Argentina.

The AGV is the world's first train to combine distributed power with articulated carriages, where each vehicle shares a set of wheels – known as bogies – with the next. All TGVs use articulated bogies, which Alstom believes have made the trains safer and substantially reduced wear on track.

The new train's significance for France was illustrated by the attendance of Nicolas Sarkozy, French president, at a ceremony to unveil the prototype on Tuesday at Alstom's Bellvue test site in La Rochelle .

However, Alstom has so far won only one order for the new train – a batch of 25 units from NTV, a private Italian operator hoping to start competing against state-owned Trenitalia. There is no immediate prospect of orders from SNCF, the French state-owned train operator that developed the TGV alongside Alstom. SNCF wishes to continue ordering double-deck TGV Duplex trains based on existing technology. Because of the space needed under floors for equipment, it would be impossible to design a double-deck AGV at present.

Philippe Mellier, president of Alstom's transport division, said Alstom would rapidly be able to demonstrate the performance, convenience, comfort and environmental and cost advantages of the AGV with the trains destined for NTV.

Building of the NTV trains will start in the middle of this year, with delivery planned for 2010 onwards.
source:FT