ABB shifts towards digital industries

Swiss engineering firm ABB fleshed out its latest revamp on Thursday, saying it would focus more on digital industries as it reported better-than-expected fourth-quarter earnings.

In its first results since it announced the sale of its $11bn power grids business, ABB was upbeat about the prospects for its robotics and automation businesses as growth drivers.

Robotics was ABB’s star performer during the fourth quarter, reporting an 11% rise in revenues and racking up the highest divisional profit margin.

The figures helped ABB, whose remaining products include industrial drives and electric vehicle chargers, report net profit of $317m, beating estimates of $301m in an Infront Data poll for Reuters.

The figure did not include a contribution from ABB’s power grids business, the division which it agreed to sell to Hitachi in December.

CEO Ulrich Spiesshofer said ABB had sharpened its focus on the industrial side of its business, providing better profit margins, lower risk and less volatility in the future.

“There will be a new centre of gravity of ABB towards better growth and higher profitability after the separation of the power grids business,” he said.

“There is a tremendous opportunity to grow in the future,” Spiesshofer said, noting ABB operated in a market valued at about $410bn that would grow to about $550bn by 2025.