Description
This quarter, ABB announced that it will invest 100 million euros to build a world-leading innovation and training park in Eggelsberg, Austria, where B&R is headquartered. This move
will promote ABB”s innovation in the fields of machinery and factory automation, including
artificial intelligence and machine learning . ABB also announced that it will invest approximately US$30 million in Sweden to build a new technologically advanced power transformer
component production plant.
ABB completes acquisition of GE Industrial Systems business
Through continuous business portfolio management, ABB is gradually promoting the shift of business focus. On June 30, 2018, ABB announced the completion
of the acquisition of GE Industrial Systems (GEIS). Through this acquisition, ABB further consolidates its second-ranked leadership position in the global electrification field,
expands the attractive North American market (ABB”s largest market), and accelerates the growth of the
leading cycle business. GE”s industrial systems business will be merged into ABB”s electrical products division
and become a new business unit – Industrial Systems Business Unit (EPI S ). EPIS is headquartered in Atlanta, Georgia, and has approximately 14,000 employees worldwide.
The acquisition is expected to create approximately $200 million in annual cost synergies starting in the fifth year. ABB will create value through the highly
complementary product and technology portfolio, especially the combination of ABB Ability™ solutions and GEIS”s large installed base. In addition, ABB will realize cost synergies
from business layout optimization, supply chain cost savings
and reduced sales and management expenses. The integration of GEIS is expected to reduce operating EBITDA margins
by approximately 60 basis points and 260 basis points respectively for ABB Group and ABB Electrical Products in the second half of this year. After this,
ABB plans to restore the operating EBIT margin of the Electrical Products Division to a range of 15% to 19% in 2020. As part
of the transaction, ABB has established a long-term strategic supplier relationship with GE to provide ABB products and solutions. The acquisition
also includes long-term rights to use the GE brand.
Sparing no effort in comprehensive execution
ABB continues to benefit from ongoing cost management and productivity improvements. In the second quarter, pricing adjustments
and cost savings and other measures overcame the impact of rising raw material prices and supported the group”s annual sales cost savings target of 3% to 5%.
Based on ABB’s “Thousand Days Project” completed in 2017, the group continues to focus on quality and strengthen operations. Through the implementation of Lean
Six Sigma projects, ABB closely follows customer feedback, carefully analyzes and closes performance gaps. Currently,
ABB”s business divisions are responsible for more than 1,500 continuous improvement projects.
Business-led cross-functional collaboration
The expansion of strategic partnerships in the second quarter includes the establishment of a global strategic alliance
between ABB and Rittal based on previous successful cooperation to provide industrial-grade edge data center solutions, and the joint establishment of a software
alliance for collaborative robots with Kawasaki Heavy Industries .
ABB continues to strengthen its strategic brand positioning and cooperates with the ABB FIA Formula E Championship –
which provides an excellent platform for ABB to demonstrate its leading position in the field of electric transportation.
Outlook
Macroeconomic indicators in Europe and the United States are trending upward, and the Chinese market is also expected to
continue to grow. Overall, global markets maintain growth, but uncertainty remains high in parts of the world. Changes in oil prices and exchange rates will
continue to have an impact on the company”s performance.
In the long term, the energy revolution and the fourth industrial revolution have created positive development prospects for the three
major market areas of power, industry, transportation and infrastructure. With good market positioning, comprehensive market and regional coverage,
leading technology and outstanding financial capabilities, ABB aims to seize opportunities and achieve long-term profitable growth.
Excitation system ABB module SB822
Excitation system ABB module SB822
Excitation system ABB module SB821
Excitation system ABB module SB808F
Excitation system ABB module SB808F
Excitation system ABB module SB512
Excitation system ABB module SB512
Excitation system ABB module SB510 3BSE000860R1
Excitation system ABB module SB510
Excitation system ABB module SB510
Excitation system ABB module SAM3.0
Excitation system ABB module SAFT164
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Excitation system ABB module SAFT112POW
Excitation system ABB module SAFT111POW
Excitation system ABB module SAFT110
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Excitation system ABB module SAFT103
Excitation system ABB module SAFT103
Excitation system ABB module SA9923A-E
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Excitation system ABB module SA920S
Excitation system ABB module SA920N
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Excitation system ABB module SA911S
Excitation system ABB module SA911N
Excitation system ABB module SA911B
Excitation system ABB module SA910S
Excitation system ABB module SA811F-Z
Excitation system ABB module SA811F 3BDH000013R1
Excitation system ABB module SA811F
Excitation system ABB module SA811F
Excitation system ABB module SA811F
Excitation system ABB module SA802F
Excitation system ABB module SA801F
Excitation system ABB module SA801F
Excitation system ABB module SA610
Excitation system ABB module SA168 3BSE003389R1
Excitation system ABB module S900-BI100
Excitation system ABB module S503X
Excitation system ABB module S503X
Excitation system ABB module S200-TB3T
Excitation system ABB module S200-TB3
Excitation system ABB module S200-PS13
Excitation system ABB module S200-IR8
Excitation system ABB module S-113N 3BHB018008R0101
Excitation system ABB module S-113N 3BHB018008R0001
Excitation system ABB module s-113N 3BHB018008R0001
Excitation system ABB module S-093H 3BHB030478R0309
Excitation system ABB module S-093H 3BHB030478R0309
Excitation system ABB module S-076N 3BHB009884R0021
Excitation system ABB module S-073N 3BHB009884R0021
Excitation system ABB module S-073N 3BHB009884R0021
Excitation system ABB module RXTUG 22H 1MRK000592-A
Excitation system ABB module RXPPK 2H 1MRK001615-AA
Excitation system ABB module RXIIK 4 1MRK001643-AA
Excitation system ABB module RXIDK 2H 1MRK000838-HA
Excitation system ABB module RXEDK 2H 1MRK000841-RA
Excitation system ABB module RXDS 4 1MRK000344-A
Excitation system ABB module RX865
Excitation system ABB module RX845
Excitation system ABB module RX835
Excitation system ABB module RX835
Excitation system ABB module RW857F
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Excitation system ABB module RVC6-5A
Excitation system ABB module RVC6-5A
Excitation system ABB module RTAC-01
Excitation system ABB module RMU811
Excitation system ABB module RMIO-02C
Excitation system ABB module RLY-100
Excitation system ABB module RLM01 3BDZ000398R1
Excitation system ABB module RLM01
Excitation system ABB module RLM01
Excitation system ABB module RLM01
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