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 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.