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ABB To Explore All Options To Exit Three Divisions

Swiss engineering company ABB Ltd.(ANN.L,ABB) said that it has decided to explore all options to exit three divisions. They are turbocharging, mechanical power transmission, and power conversion.

The divisions represent about $1.75 billion of combined annual revenues or about six percent of ABB's total revenues.

ABB said it will increase the number of divisions to 20 as of January 1, 2021, due to a split in the Motion business area portfolio, while Industrial Automation will be renamed Process Automation.

ABB said that ABB-OS target of $500 million net savings has been reached one year ahead of plan, due to the reorganization of the Group.

ABB plans to return to shareholders net cash proceeds from the Power Grids divestment of $7.6 billion-$7.8 billion.

ABB retained its financial framework with modifications to certain targets. The company expects revenue growth of 3%-5% annual average through economic cycle. It projects operational EBITA margin corridor to be 13%-16%. It anticipates basic earnings per share growth to be above revenue growth.

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