ABB (ABB)

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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. 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 in 2006 (see figure 2). The company is headquartered in Zurich, Switzerland.

The company manages its business based on a divisional structure. In September 2005, the company announced a change to its organizational structure by replacing two core divisions Power Technologies and Automation Technologies with a five-division structure effective as of January 1, 2006. As of December 31, 2006, the core businesses comprised five divisions: Power Products, Power Systems, Automation Products, Process Automation, and Robotics. Certain operations that are not integral to the focus on power and automation technologies and that the company is considering for sale, winding down or otherwise exiting but are not discontinued operations are classified as Non-core activities.

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. The division contributed 28% to total revenue in 2006.

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. The division contributed 17% to total revenue in 2006.

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. The division contributed 25% to total revenue in 2006.

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. The division contributed 20% to total revenue in 2006.

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. The division contributed 5% to total revenue in 2006.

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Figure 2:

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