ABB shifts 'centre of gravity' to grow revenues
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ABB has announced a Next Level strategy that aims to boost revenue by 4-7% per year to 2020.
Around 75% of revenue growth would come from industry, transport and infrastructure sectors according to ABB.
The automation and power giant aims to "shift its centre of gravity" towards strengthened competitiveness, higher organic growth momentum and lower risk.
Areas earmarked for high growth by ABB include the transformation towards a digital grid in utilities and the design of facilities of the future in process industries like oil and gas.
ABB CEO Ulrich Spiesshofer told the company's Capital Markets Day in London: "Our Next Level strategy will focus on actions centred on accelerating ABB's organic growth momentum, margin accretion as well as enhanced capital efficiency to deliver greater shareholder value."
Spiesshofer added: "We are shifting our centre of gravity towards higher growth segments while enhancing competitiveness and lowering risk particularly in our Power Systems division."
ABB announced a $4bn shareholder buyback programme to "allow shareholders to directly benefit from the continued solid cash generation of our business," according to Spiesshofer.
The automation and power giant will also remodel its regional structure from eight to three divisions: Asia, Middle East and Africa; Americas; and Europe.
