ABB: exploring options to exit three businesses

(CercleFinance.com) - ABB said on Thursday that it has decided to explore all options to exit three of its businesses, as the Swiss engineering firm focuses on profitability before growth in order to strengthen underperforming units.


The three divisions - turbocharging, mechanical power transmission and power conversion - represent roughly 1.75 billion dollars of combined annual revenues, or approximately 6% of ABB's total revenues, the company said.

ABB currently has 20 units.

The group - which is hosting its Capital Markets Day today - said portfolio reviews will continue to be a "key element" of its future.

It also repeated its financial targets, aiming at average annual revenue growth of between 3% and 5%, with an EBITA margin of 13%-16%.

However, these announcements failed to conince investors, as ABB shares dropped over 3% on Thursday morning on the Zurich Stock Exchange.

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