ABB to Simplify Structure, Expects Annual Cost Savings of $500 Million
December 17 2018 - 2:41AM
Dow Jones News
By Alberto Delclaux
ABB Ltd. (ABBN.EB) said Monday that it will simplify its
organizational structure and give more independence to its business
units with the aim of generating annual cost savings of about $500
million in the medium term.
The company said it will empower its four business
lines--electrification, industrial automation, robotics and
discrete automation and motion--by giving them full operational
ownership of products, functions, research and technology and
territories, while it will exit country and regional
structures.
The company expects nonoperational restructuring charges of
about $500 million over the next two years.
The company issued new medium-term targets of 3% to 6% annual
comparable revenue growth, and an operational earnings before
interest, tax and amortization margin of between 13% and 16%.
ABB also announced Monday that it agreed to sell a majority
stake in its power grids division to Hitachi Ltd. (6501.TO).
Write to Alberto Delclaux at alberto.delclaux@dowjones.com
(END) Dow Jones Newswires
December 17, 2018 02:26 ET (07:26 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
ABB (NYSE:ABB)
Historical Stock Chart
From Mar 2024 to Apr 2024
ABB (NYSE:ABB)
Historical Stock Chart
From Apr 2023 to Apr 2024
