QUOTE AND NEWS
Bloomberg  2 hrs ago  Comment 
ABB Ltd. and Hitachi Ltd. said they will form a joint venture to supply equipment for power grids in Japan, combining the Swiss company’s technology with the Tokyo- based manufacturer’s local sales network.
Reuters  Dec 16  Comment 
* Pair hope to profit from Japanese electricity reforms (Recasts, adds details on electricity reforms in Japan)
Reuters  Dec 10  Comment 
Reuters Market Eye - ABB India up 3.4 percent, Siemens gains 2.8 percent.
Market Intelligence Center  Dec 9  Comment 
After closing Monday at $21.56, ABB Ltd (ABB) presents an attractive opportunity to get a 5.97% return in just 192 days, which is an annualized return of 11.35% (for comparison purposes only). To enter this trade, sell one Jun. '15 $22.00 call for...
The Hindu Business Line  Dec 4  Comment 
Thursday proved a surprisingly good day for certain heavy electrical equipment companies, with many hitting new highs during the session. The top gainers in the segment were ABB (₹151 or...
The Economic Times  Dec 4  Comment 
After surging 19.99% to Rs 1,396.70 -- its 52-week high on the BSE in intra-day trade, shares of ABB finally ended at Rs 1,315.05, up 12.98%.
The Hindu Business Line  Dec 3  Comment 
Power major ABB has bagged orders worth Rs 334 crore from public utilities, Bihar Grid Corporation Ltd (BGCL) and West Bengal State Electricity Transmission Company Ltd (WBSETCL), to build new tra...
The Hindu Business Line  Nov 10  Comment 
Looks to push solar water pumps
The Economic Times  Oct 30  Comment 
In addition, even in the absence of such delays, the growth in orders would have been still lower to justify its high stock valuation.




 
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ABB is a global provider of power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. Their core offering is elimination of waste due to to inefficient energy transmission or unnecessary labor hours which ABB provides with hardware and service solutions. 2008 EBIT was a record $4.6B [1]

[trends and forces overview]

Business and Financials

The company serves electric, gas, and water utilities, as well as industrial and commercial customers, with a broad range of products, systems, and services for power transmission, distribution, and power plant automation. The company also delivers automation systems for measurement, control, motion, protection, and plant optimization across a full range of industries. The company applies its expertise to develop creative ways of integrating its products and systems with customers' business processes to enhance their productivity and efficiency. The company is international in scope and generates revenues in numerous currencies. The company operates in approximately 100 countries, and has structured its global organization into four regions: Europe, the Americas, Asia, and the Middle East and Africa (MEA), which contributed roughly 46%, 19%, 25%, and 10% respectively to total revenue. The company is headquartered in Zurich, Switzerland. ABB has four operating segments with a range of products. However, 55% of 2008 revenue and 68% of operating profits are driven by ABB's niche position in switchgear circuit breakers.

Figures ($Millions) [1] 2008 2007 2006 '07 to '08% Change
Power Products
Orders 13,267 11,320 8,572 20%
Revenue 11,980 9,777 7,275 22%
EBIT 2,100 1,596 939 32%
Power Systems
Orders 7,408 7,744 5,733 (4)%
Revenue] 6,912 5,832 4,544 19%
EBIT 592 489 279 21%
Automation Products
Orders 10,872 9,314 7,706 17%
Revenue] 10,250 8,644 6,837 19%
EBIT 1,908 1,477 1,053 29%
Process Automation
Orders 8,657 7,935 6,550 9%
Revenue] 7,815 6,420 5,448 22%
EBIT 926 683 541 36%
Robotics
Orders 1,658 1,488 1,240 11%
Revenue 1,642 1,407 1,288 17%
EBIT 9 79 1 (89)%


Business Segments

Power Products (31.0% of 2008 Revenue)

The Power Products division serves electric, gas, and water utilities, as well as industrial and commercial customers with a broad range of products and services for power transmission and distribution. Key technologies include high- and medium-voltage switchgear and apparatus, circuit breakers for various current and voltage levels, power and distribution transformers, and sensors and products to automate and control electrical and other utility networks.

Power Systems (17.9% of 2008 Revenue)

The Power Systems division serves electric, gas, and water utilities, as well as industrial and commercial customers, with a broad range of systems and services for power generation, transmission, and distribution. Key technologies include substations, high-voltage power converters, advanced cables for underground and undersea power transmission, and systems to automate and control power plants, electrical, and other utility networks.

Automation Products (26.6% of 2008 Revenue)

The Automation Products division provides products, with related services, that are used as components in machinery, switchboards, distribution panels, and building and automation systems. The Automation Products offering covers a wide range of products and services including low-voltage switchgear, breakers, switches, control products, DIN-rail components, enclosures, wiring accessories, instrumentation, drives, motors, generators, and power electronics systems. These products help customers to improve productivity, save energy, and increase safety. Key applications include power distribution, protection and control, energy conversion, data acquisition and processing, and actuation. The majority of these applications are for industrial applications, with others provided for building construction, rail transportation, and utilities.

Process Automation (20.2% of 2008 Revenue)

The Process Automation division provides products, systems, and services for the automation and optimization of industrial processes. The main offerings are process automation, plant electrification and quality control systems, analytical measurement devices, turbochargers, and marine propulsion and control systems. The key end markets are the oil and gas, pulp and paper, metals and minerals, chemicals and pharmaceuticals, turbocharging, and marine industries.

Robotics (4.3% of 2008 Revenue)

The Robotics division offers robot products, systems, and service for the automotive and manufacturing industries. The division develops standardized manufacturing cells for machine tending, welding, cutting, painting, and finishing and provides packaged systems to Auto Makers for press automation, paint process automation, and power train assembly. The division also provides a full range of robotics services, from product maintenance to system design.

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Trends and Forces

Increasing Revenue from Developing Nations

in 2008 for the first time in ABB's history, revenue from developing nations exceeded revenue from developed nations.

Need for Investment in Power Infrastructure

Worldwide Focus on Efficient Energy Production

Competition

Siemens AG (SI)

Emerson Electric Company (EMR)

Honeywell International (HON)

Rockwell Automation (ROK)



References

  1. 1.0 1.1 1.2 ABB 2008 6-K (filed 2/14/2009)
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