--Global macroeconomic development in line with expectations; targets reconfirmed--
ABB, the leading power and automation technology group, will provide an update on its 2011-15 strategy at its annual Capital Markets Day today, focusing on its drive for increased competitiveness through innovation, cost savings and productivity improvements.
The company will explain its strategy to build its position in the global industrial automation market and how it is implementing its plan to grow service revenues to 20-25 percent of the Group’s total sales by 2015. The event takes place in London.
The global economy has so far developed in line with the company’s expectations when it published its 2011-2015 strategy and financial targets last November, according to ABB CEO Joe Hogan. ABB based its growth projections on a global slowdown in the 2011-2013 period and an average global GDP growth of 3-4 percent over the period. The company also expected global industrial capital expenditures – a measure of investments by its customers in new plant and equipment – to grow by an average of 5-6 percent per year to 2015, led by the emerging markets.
“The market environment during the first 18 months of our planning period has been challenging, especially with all the uncertainty around the future of the euro, the pace of growth in China and the continuing overcapacity in parts of the power transmission sector,” Hogan said.
“However, ABB has managed to deliver steady results despite the volatile business environment,” Hogan said. “That’s one of our main messages today – ABB has unique strengths in its business portfolio, geographic scope, technology base and cost culture that allow us to deliver solid returns through the cycle.”
Hogan reconfirmed all of the company’s financial targets for the 2011-15 period.
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 145,000 people.
More information
ABB will host an analyst and investor meeting today at Plaisterers’ Hall in London, UK, starting at 10:00 a.m. local London time (11:00 a.m. CET). The meeting will also be available via a live webcast. A link to the live webcast will be available at www.abb.com. Presentations will be available for download shortly before the event begins. You’ll find further details under the link “Capital Markets Day” at www.abb.com/investorrelations.
Important notice about forward-looking information
This press release includes forward-looking information and statements as well as other statements concerning the outlook for our business. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions and the economic conditions of the regions and industries that are major markets for ABB Ltd. These expectations, estimates and projections are generally identifiable by statements containing words such as “aims,” “expects,” “believes,” “estimates,” “targets,” “plans” or similar expressions. However, there are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this press release and which could affect our ability to achieve any or all of our stated targets. The important factors that could cause such differences include, among others, business risks associated with the volatile global economic environment and political conditions, costs associated with compliance activities, raw materials availability and prices, market acceptance of new products and services, changes in governmental regulations and currency exchange rates and such other factors as may be discussed from time to time in ABB Ltd’s filings with the US Securities and Exchange Commission, including its Annual Reports on Form 20-F. Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.
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