Friday, March 1, 2019

Delivering the Future: FedEx Unveils Autonomous Delivery Robot

 FedEx SameDay Bot is an Evolution for Same-Day, Last-Mile E-Commerce Deliveries



MEMPHIS, Tenn. -Thursday 28 February 2019 [ AETOS Wire ]

(BUSINESS WIRE)-- FedEx Corp. (NYSE:FDX) announced today a development in cutting-edge delivery solutions to meet the rapidly changing needs of consumers — the FedEx SameDay Bot — an autonomous delivery device designed to help retailers make same-day and last-mile deliveries to their customers.

With the bot, retailers will be able to accept orders from nearby customers and deliver them by bot directly to customers’ homes or businesses the same day. FedEx is collaborating with companies such as AutoZone, Lowe’s, Pizza Hut, Target, Walgreens and Walmart to help assess retailers’ autonomous delivery needs. On average, more than 60 percent of merchants’ customers live within three miles of a store location, demonstrating the opportunity for on-demand, hyper-local delivery.

“The FedEx SameDay Bot is an innovation designed to change the face of local delivery and help retailers efficiently address their customers’ rising expectations,” said Brie Carere, executive vice president and chief marketing and communications officer for FedEx. “The bot represents a milestone in our ongoing mission to solve the complexities and expense of same-day, last-mile delivery for the growing e-commerce market in a manner that is safe and environmentally friendly.”

The FedEx bot is being developed in collaboration with DEKA Development & Research Corp. and its founder Dean Kamen, inventor of many life-changing technologies, including the iBot™ Personal Mobility Device and the Segway®.

“The bot has unique capabilities that make it unlike other autonomous vehicles,” Kamen said. “We built upon the power base of the iBot, an advanced, FDA-approved, mobility device for the disabled population with more than 10 million hours of reliable, real-world operation. By leveraging this base in an additional application, we hope that the iBot will become even more accessible to those who need it for their own mobility.”

The FedEx bot is designed to travel on sidewalks and along roadsides, safely delivering smaller shipments to customers’ homes and businesses. Bot features include pedestrian-safe technology from the iBot, plus advanced technology such as LiDAR and multiple cameras, allowing the zero-emission, battery-powered bot to be aware of its surroundings. These features are coupled with machine-learning algorithms to detect and avoid obstacles, plot a safe path and allow the bot to follow road and safety rules. Proprietary technology makes the bot highly capable, allowing it to navigate unpaved surfaces, curbs, and even steps for an extraordinary door-to-door delivery experience.

FedEx plans to test the bot this summer in select markets, including Memphis, Tenn., pending final city approvals.

“We couldn’t be more excited that FedEx chose its hometown as one of the pilot cities for this revolutionary innovation,” Mayor Jim Strickland, City of Memphis, said. “We look forward to working with FedEx to continue introducing technologies that will help improve the quality of life in our community.”

The initial test will involve deliveries between selected FedEx Office locations. FedEx Office currently offers a SameDay City service that operates in 32 markets and 1,900 cities using branded FedEx vehicles and uniformed FedEx employees. The FedEx bot will complement the FedEx SameDay City service.

“The FedEx SameDay Bot represents the next chapter in our long legacy of delivering innovation and outstanding service, supported by an already existing FedEx logistics ecosystem,” said Brian Philips, President and CEO of FedEx Office. “We are excited to bring this technology to address new markets and better support our customers. The companies who have provided feedback on its potential use have been instrumental in ensuring we are looking toward the future of e-commerce.”

The FedEx bot will support retailers in several segments, and the first group of retail customers to view the prototype have recognized the value the technology can bring to their industries.

“We are thrilled to be working with the talented teams at FedEx and DEKA on this revolutionary innovation,” said Bill Rhodes, Chairman, President and CEO, Customer Satisfaction, AutoZone. “When we saw the FedEx SameDay Bot in action, it confirmed to our team the many ways it can help us improve our service by offering reliable, highly efficient deliveries to our customers.”

“The convenience and capability of the FedEx Same Day Bot has the potential to greatly simplify and speed distribution for the full range of our customers. Consider pros who could save time and money by never leaving the job site for the critical tools and supplies they need from Lowe’s,” said Don Frieson, Lowe’s Executive Vice President, Supply Chain. “We look forward to exploring all the possibilities to enhance the service we provide our customers through this innovation.”

“Pizza Hut is constantly exploring new technology-based solutions to advance our delivery business as we look to redefine the modern pizza experience for our customers,” said Nicolas Burquier, chief customer and operations officer, Pizza Hut, U.S. “The opportunity to work with a proven innovator in the delivery space like FedEx allows us the opportunity to leverage cutting-edge technology to further optimize our best-in-class delivery experience.”

“We continue to invest in new technologies and capabilities that make Target the easiest place to shop – both now and in the future. We’re excited to be collaborating with FedEx to explore how autonomous robots could enhance delivery services and more, ensuring we continue to exceed our guests’ expectations for ease and convenience,” said John Mulligan, chief operating officer, Target.

“At Walgreens, we’re on a journey to leverage the latest in innovative technologies to provide a differentiated pharmacy and health care experience, and delivery solutions that bring our services to our customers wherever they are and whenever they need them,” said Alex Gourlay, co-chief operating officer, Walgreens Boots Alliance, Inc. “With FedEx as a partner, Walgreens has become the fastest choice for next-day prescription delivery in the U.S., and we’re excited that through our growing relationship, the FedEx SameDay Bot is another way we can offer better service and greater convenience to our customers.”

The bot made its first public appearance during NBC’s The Tonight Show Starring Jimmy Fallon on Tuesday, Feb. 26. This prototype will be refined to meet safety standards and regulations, and the specific needs of customers. For more information on the FedEx SameDay Bot, please visit thefuturefedex.com. For b-roll, please click here.

About FedEx Corp.

FedEx Corp. (NYSE:FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $69 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 450,000 team members to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. To learn more about how FedEx connects people and possibilities around the world, please visit about.fedex.com.

About DEKA Research & Development Corp.

Based in Manchester, NH, DEKA is a research and development company of nearly 600 employees comprised of engineering, manufacturing and quality assurance professionals focused on the development of new technologies that span a diverse set of applications. The company was founded in 1982 by Dean Kamen, an inventor who holds more than a thousand U.S. and foreign patents and numerous awards, many of them for innovative medical devices that have expanded the frontiers of healthcare worldwide.

Certain statements in this press release may be considered forward-looking statements, such as management’s expectations regarding the capabilities of and efficiencies available through the FedEx SameDay Bot, and our ability to satisfy applicable safety standards and regulations and receive required government approvals. Such forward-looking statements are subject to risks, uncertainties and other factors, including inherent uncertainty that accompanies new and innovative technology, unexpected results from the initial tests, and evolving safety standards, regulations and required government approvals, which could cause actual results to differ from results expressed or implied by such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.



View source version on businesswire.com: https://www.businesswire.com/news/home/20190227005421/en/

Contacts

Bonny Harrison
FedEx Media Relations
901.434.5207
bonny.harrison@fedex.coSan Serif



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Spotify Launches in India

World’s most popular music streaming service launches a personalised experience, upgraded for India

MUMBAI-Thursday 28 February 2019 [ AETOS Wire ]

(BUSINESS WIRE)-- Spotify (NYSE: SPOT), the world’s leading music streaming service, is available in India today with all-new features tuned to Indian music fans’ personal tastes.

With today’s launch in the world’s second most populous country (over 1.3bn people), Spotify is making its way to the fastest growing market globally for mobile apps(1). The number of active internet users in India is estimated at over 400m(2), as mobile internet and smartphones become faster and more affordable.

Spotify’s India launch follows the company’s recent expansion across MENA and South East Asia, bringing the total number of Spotify markets to 79 with 207m users, including 96m subscribers, globally.

Spotify comes to India offering the best listening experience in local and international music, with the Spotify app available to download for free or with an upgrade to Spotify Premium for only INR 119 per month.

“As Spotify grows, our goal is to bring millions of artists and billions of fans together from every country and background,” said Daniel Ek, Spotify founder and CEO. “India has an incredibly rich music culture and to best serve this market, we’re launching a custom-built experience. Not only will Spotify bring Indian artists to the world, we’ll also bring the world’s music to fans across India. Spotify’s music family just got a whole lot bigger.”

All of Spotify’s Favourite Features

Spotify comes to India with its unrivalled mix of features that have made it the world’s most popular music app, including more than 40m songs offering the hottest Indian and international music, best-in-class personalised music recommendations and the freedom to play across a wide range of devices and app integrations.

Tuned to India

Spotify has redesigned the music experience for India with a fresh set of exclusive features:

    Multi-language music recommendations: With many Indians speaking several local languages, Spotify’s music recommendation engine can now be tuned to Hindi, Punjabi, Tamil and Telugu. Indian users can select their preferred language(s) to receive tailored Daily Mix, Home, Radio, Search results and recommendations.
    Spotify Free with total control: For the first time ever on Spotify Free, smartphone users can play every song on demand.
    Playlists made for India: Expertly curated and regularly updated by our team of Indian music experts, new playlists include Indiestan, Rap91, Namaste Love, Punjabi101, Bollywood Butter, Top Hits in Hindi, Tamil, Telugu and Punjabi. These sit alongside our celebrated international playlists including Mint, RapCaviar, Viva Latino and the This is… artist compilations. Add billions of creator and fan-built playlists to the mix and Spotify has a playlist for any mood or moment.
    Spotify goes to the movies: Introducing Starring…, a series of playlists featuring the best music from the most popular Bollywood, Tollywood, Kollywood, and Punjabi actors. Spotify’s recommendations will also include songs from India’s favourite movies and actors.
    City playlists: Find out what's hot in the city, with new algorithmic playlists tracking what’s trending in Mumbai, Delhi, Bangalore and Chennai.

“Spotify’s arrival in India is a big step forward in our overall global growth strategy. A fundamental piece of that strategy is staying connected to global culture while allowing room for local adaptation, and we’ve certainly achieved that with our India launch,” said Cecilia Qvist, Spotify’s Global Head of Markets. “We’ve worked closely with local teams of musicians, creators and cultural tastemakers to ensure Spotify is going to be loved, used and favored by people all over India whether they’re listening to local Bollywood and Punjabi hits, or discovering curated global playlists of K-pop or Reggaeton.”

To enjoy music the way you want it, download the Spotify app today via the Android or iOS app store or by heading to www.spotify.com/free.

Check out our India launch video and artist welcome video. Click here for further imagery.

Notes to Editors

(1)Source: App Annie Forecast, 2018.

(2)Source: IAMAI Mobile Internet Report, 2017.

About Spotify Technology S.A.

Spotify transformed music listening forever when we launched in 2008. Our mission is to unlock the potential of human creativity by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by these creators. Everything we do is driven by our love for music.

Discover, manage, and share over 40 million tracks for free, or upgrade to Spotify Premium to access exclusive features including offline mode, improved sound quality, Spotify Connect and ad-free listening.

Today, we are the world’s largest music streaming subscription service with a community of 207 million users, including 96 million Spotify Premium subscribers, across 79 markets.

For further information head over to our press page at https://newsroom.spotify.com/.

Contacts

Dustee Jenkins
press@spotify.com

Permalink : https://www.aetoswire.com/news/spotify-launches-in-india/en

Ascend Performance Materials Extends Force Majeure on HMD, Polymers



HOUSTON -Thursday 28 February 2019 [ AETOS Wire ]

(BUSINESS WIRE)-- Ascend Performance Materials today announced it has extended force majeure on hexamethylene diamine (HMD) and all polymers, compounds and fibers.

Persistent fog followed by historic rainfall and flooding in the Tennessee River Valley restricted transportation along the Tennessee-Tombigbee Waterway. The U.S. Army Corps of Engineers has closed locks along the waterway, thereby cutting off supply of a crucial raw material to an Ascend manufacturing facility.

Ascend is exploring other options for procuring the necessary raw materials. The company will allocate existing products as prescribed in its contracts and is working with affected customers to minimize the impact to their respective businesses.

About Ascend Performance Materials

Ascend Performance Materials is a global premium provider of high-quality plastics, fibers and chemicals and is the world’s largest integrated producer of PA66 resin. Headquartered in Houston, Texas, Ascend has nine global locations, including five fully-integrated manufacturing facilities located in the southeastern United States and an engineering plastics compounding facility in Europe, all dedicated to the innovation and safe production of nylon 6,6. With three of the world’s largest chemical processing facilities, Ascend’s materials form the building blocks for products used in everyday applications from apparel to airbags, cable ties to circuit boards and carpets to car parts. Ascend’s 2,500-person global workforce is committed to making a difference in the communities we serve and leading the development of nylon 6,6 solutions that inspire everyone, everywhere, every day.

Together, we’re making a difference.
Together, we’re inspiring everyday.

More information about Ascend can be found at www.ascendmaterials.com



View source version on businesswire.com: https://www.businesswire.com/news/home/20190227006016/en/

Contacts

Nicki Britton, +1 713-315-5891, nbritt@ascendmaterials.com



Permalink : https://www.aetoswire.com/news/ascend-performance-materials-extends-force-majeure-on-hmd-polymers/en

JIUN to Release SonicDICOM PACS Cloud, a Cloud-Based Medical Image Management System, in March

FUKUOKA, Japan -Thursday 28 February 2019 [ AETOS Wire ]

(BUSINESS WIRE)-- JIUN Corporation has announced on February 28th, 2019, the March release of SonicDICOM PACS Cloud, a cloud-based medical image management system. Pre-registration is available at the following product website. Registrants will receive a notification in email when services begin.

Cloud service overview: https://sonicdicom.com/cloud/

SonicDICOM PACS Cloud enables any computer or tablet with an Internet connection to view medical images hosted in the cloud from anywhere in the world, simply by accessing a URL. There are no initial expenses because this system allows you to use the hardware you already have; you can use PACS for just a monthly fee.

The following are the key benefits for this new service.
1) PACS can be easily created in the cloud. You can start using it after just a few minutes of browser-based setup.
2) It is easy to share just the necessary medical images among clinics and hospitals. This eliminates the need for CDs or DVDs.
3) A maximum of 3 gigabytes of storage can be used for free. This not only allows you to try the service easily, but it enables actual use among hospitals and clinics, as well as use for personal reasons, for doctors, researchers, and patients.
4) You can select from among six countries for a location to store your data. Additional locations will be added in the future.
5) The service is available in ten different languages. Additional languages will be added in the future.

JIUN is launching this service as part of their commitment to meeting United Nations Sustainable Development Goals. This service can be used to create a global medical network in the cloud, and to promote medical collaborations that go beyond national borders. JIUN is working to rectify disparities in medical treatment across the world, and is striving to resolve global social issues.

The development of this service was made possible with support from the Japanese Ministry of Economy, Trade, and Industry.

JIUN Corporation

Since the company’s founding in 2000, our focus has been on developing systems related to medical care. We have rapidly provided highly unique services, earning us praise from our services’ users.

COMPANY OVERVIEW
Name:           JIUN Corporation
Established:           July, 2000
Capitalization:           JPY 10 million
Representative Director:           Fumitaka Kanda, President
Address:           9F, FRC Building, 1-14-1 Tanotsu, Higashi-ku, Fukuoka City, Fukuoka Prefecture, Japan
URL:          

https://sonicdicom.com/about-us/ (company overview)
           

https://sonicdicom.com/ (product website)
           

https://sonicdicom.com/cloud/ (cloud service overview)


Screenshots

Structural diagram: https://sonicdicom.com/img/release/cloud.jpg
Viewer screen: https://sonicdicom.com/img/release/viewer.png

The original source-language text of this announcement is the official, authoritative version. Translations are provided as an accommodation only, and should be cross-referenced with the source-language text, which is the only version of the text intended to have legal effect.





View source version on businesswire.com: https://www.businesswire.com/news/home/20190227005357/en/

Contacts

JIUN Corporation
Daisuke Teshima
TEL: +81-92-626-7002
FAX: +81-92-626-7022
E-mail: sonic@sonicdicom.com
Email is the preferred medium for inquiries.

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ABB and Dassault Systèmes Enter Global Software Partnership for Digital Industries



ZURICH-Thursday 28 February 2019 [ AETOS Wire ]

Unique customer value through ABB Ability™ offering of digital solutions combined with Dassault Systèmes’ 3DEXPERIENCE platform



(BUSINESS WIRE) -- ABB and Dassault Systèmes today announced a wide spanning global partnership to offer customers in digital industries a unique software solutions portfolio ranging from product life cycle management to asset health solutions. The two companies will provide customers an end-to-end offering of advanced open digital solutions, enhancing competitiveness of industrial companies, while increasing flexibility, speed and productivity of their products' lifecycles, manufacturing and operations.

The partnership will combine the strengths of ABB Ability™ digital solutions and Dassault Systèmes' 3DEXPERIENCE platform, and build on both companies’ strong installed base, deep domain expertise and global customer access. ABB has already adopted the 3DEXPERIENCE platform to model and simulate its solutions before delivering them to its customers. With this partnership, ABB will develop and provide customers with advanced digital twins, enabling customers to run ABB’s solutions and their operations with improved overall efficiency, flexibility and sustainability.

The companies will, in a staged approach, focus on factory automation and robotics, process industry automation, as well as electrification solutions for smart buildings. The first joint solutions will be showcased at the upcoming industrial Hannover Messe trade fair in Germany, April 1-5, 2019.

“This game-changing partnership will serve our customers to lead in innovation and growth, fundamentally transforming their entire value chain to tap the vast opportunities of industrial digitalization. Together, we are offering an open, end-to-end digital portfolio – from digital twin to asset health – that gives our customers a competitive edge, building on our combined offering, domain expertise and global reach,” said ABB CEO Ulrich Spiesshofer. “ABB is adding Dassault Systèmes to its strong partner network for industrial digitalization, including Microsoft, HPE and IBM. We look very much forward to working with the entire global Dassault Systèmes team to drive innovation and customer value.”

“The Industry of the 21st century is no longer determined simply by the ability to manufacture goods. Today’s leaders will be determined by superior mastery of technical know-how. This is the new competitive differentiator and it’s happening now due to a convergence of digital technologies that are transforming every aspect of industrial business,” said Bernard Charlès, Vice Chairman and CEO, Dassault Systèmes. “In this industry renaissance, a platform approach enables the real and virtual worlds to inform and reinforce one another. Our partnership with ABB will draw from decades of combined expertise to help customers make the most of this powerful and dynamic trend.”

In today's highly automated industries, digital factory modeling and flexible, robotized manufacturing systems help businesses to generate more design iterations at a quicker rate with more robust designs. This, in turn, helps to accelerate the shift from mass production to mass customization, where goods are manufactured in a greater variety and in smaller batches and in shorter product life cycles. For many manufacturers, the cost of downtime has dramatically increased in recent years as just-in-time delivery has become the norm. An hour of downtime at a modern production site can cost more than $1 million.

ABB has already a strong digital solution offering within the industry through its offering ABB Ability™. It was launched in 2017 and offers more than 210 digital solutions to plan, build and operate industrial operations with higher productivity and safety at lower costs.

Dassault Systèmes works with companies of all sizes in 11 industries to help them meet new challenges in today’s Industry Renaissance. The 3DEXPERIENCE platform integrates all the technologies and capabilities that leverage knowledge and know-how into one cohesive digital innovation environment that delivers digital continuity from concept to manufacturing to ownership and back. Industrial companies can integrate the platform’s 3D applications to create a digital twin that captures insights and expertise from across their entire ecosystem, to measure, assess and predict the performance of an industrial asset and help optimize its operation in an intelligent way.

The ABB – Dassault Systèmes partnership will initially focus on:

Factory Automation and Robotics

Digital twin experiences for end-to-end optimization of processes and systems, combined with the flexibility of robotics automation, will give factories the agility to adapt to increasingly dynamic markets. This includes ready-to-operate manufacturing solutions and services, along with joint consulting for industrial business transformation, to optimize and speed the launch of new products. Electronics makers can increase the production of new but short-lived products quickly, while food processors can alternate between locally tailored seasonal offerings while producing at high speed. In highly automated industries such as automotive, the digital twin experience of factories allows an integrated design and manufacturing environment to support new assembly processes with flexible and reconfigurable cells. It also makes it possible to link separate systems, such as connecting logistics automation systems to robots at work on manufacturing lines that rely on precise parts delivery for optimal production performance.

Smart Buildings

The digital partnership between Dassault Systèmes and ABB around digital twin systems will enable a seamless workflow during design, engineering and operation of buildings, as well as connected sustainable transportation solutions. The available information, in combination with Dassault Systèmes’ virtual universe 3DEXPERIENCE®, will also allow greater customer interaction during the design specification phases and operation.

Process industries: Mining example

Competitive pressure in process industries, such as mining, requires companies to continuously look for new ways to increase safety, productivity and energy efficiency of sites, while reducing costs and risk of daily operations. A digital model of the underground environment, in connection with mine planning and control systems, would allow to optimize energy consumption and mine automation, as well as enable mine operators to monitor and optimize production in real-time, while running virtual simulations of future scenarios.

ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in power grids, electrification products, industrial automation and robotics and motion, serving customers in utilities, industry and transport & infrastructure globally. Continuing a history of innovation spanning more than 130 years, ABB today is writing the future of industrial digitalization with two clear value propositions: bringing electricity from any power plant to any plug and automating industries from natural resources to finished products. As title partner in ABB Formula E, the fully electric international FIA motorsport class, ABB is pushing the boundaries of e-mobility to contribute to a sustainable future. ABB operates in more than 100 countries with about 147,000 employees. www.abb.com

Dassault Systèmes, the 3DEXPERIENCE Company, provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported. Dassault Systèmes’ collaborative solutions foster social innovation, expanding possibilities for the virtual world to improve the real world. The group brings value to over 250,000 customers of all size, in all industries, in more than 140 countries. For more information, visit www.3ds.com.

3DEXPERIENCE, the Compass logo and the 3DS logo, CATIA, SOLIDWORKS, ENOVIA, DELMIA, SIMULIA, GEOVIA, EXALEAD, 3D VIA, BIOVIA, NETVIBES and 3DEXCITE are registered trademarks of Dassault Systèmes or its subsidiaries in the US and/or other countries.

Contacts

For more information please contact:
ABB Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com
Affolternstrasse 44
8050 Zurich
Switzerland

Dassault Systèmes Press Contacts
Corporate/France Arnaud MALHERBE arnaud.malherbe@3ds.com +33 (0)1 61 62 87 73
North America Suzanne MORAN suzanne.moran@3ds.com +1 (781) 810 3774
EMEAR Virginie BLINDENBERG virginie.blindenberg@3ds.com +33 (0) 1 61 62 84 21
China Grace MU grace.mu@3ds.com +86 10 6536 2288
India Santanu BHATTACHARYA santanu.bhattacharya@3ds.com +91 124 457 7111
Japan Yukiko SATO yukiko.sato@3ds.com +81 3 4321 3841
Korea Hyunkyung CHAE hyunkyung.chae@3ds.com +82 2 3271 6653
AP South Magdalene TAN magdalene.tan@3ds.com +65 9487 1206

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Thursday, February 28, 2019

ABB: Solid Growth



ZURICH-Thursday 28 February 2019 [ AETOS Wire ]

(BUSINESS WIRE) -- FULL YEAR 2018 HIGHLIGHTS

    Total orders +8%1, up in all divisions and regions
    Revenues +4%, strong growth in Robotics and Motion
    Order backlog +6% at end of year, book-to-bill ratio2 at 1.03x
    ABB Ability™ drives growth across all divisions
    Operational EBITA margin 10.9%2, impacted by a combined 250 basis points due to stranded costs, charges for legacy non-core projects and GEIS dilution
    Reported net income at $2,173 million, -2%
    Cash flow from operating activities at approx. $3 billion
    New ABB announced
        Focus of portfolio on digital industries through divestment of Power Grids
        Simplification of business model and structure
        Shape four leading businesses aligned with customer patterns
    Acquisition of GEIS completed on June 30, 2018
    CHF 0.80 per share dividend proposed

FOURTH QUARTER HIGHLIGHTS

    Total orders +7%, higher in all divisions and regions
    Revenues +5%
    Operational EBITA margin 7.9%, impacted by a combined 400 basis points due to stranded costs, legacy non-core charges and GEIS dilution
    Solid cash flow from operating activities at approx. $1.9 billion
    Sylvia Hill to succeed Jean-Christophe Deslarzes as Chief Human Resources Officer and member of the Executive Committee, effective June 1, 2019

KEY FIGURES
   


   


   


   

CHANGE
   


   


   


   

CHANGE
   


   


   

($ in millions, unless otherwise indicated)
   


   


   


   

Q4 2018
   


   


   


   

Q4 2017 Recast
   


   


   


   

US$
   


   


   


   

Comparable

1
   


   


   


   

FY 2018
   


   


   


   

FY 2017 Recast
   


   


   


   

US$
   


   


   


   

Comparable1
               

Orders
   


   


   


   

6,985
   


   


   


   

6,328
   


   


   


   

+10%
   


   


   


   

+7%
   


   


   


   

28,590
   


   


   


   

25,034
   


   


   


   

+14%
   


   


   


   

+8%
               

Revenues
   


   


   


   

7,395
   


   


   


   

6,804
   


   


   


   

+9%
   


   


   


   

+5%
   


   


   


   

27,662
   


   


   


   

25,196
   


   


   


   

+10%
   


   


   


   

+4%
               

Income from operations
   


   


   


   

275
   


   


   


   

324
   


   


   


   

-15%
   


   


   


   


   


   


   


   

2,226
   


   


   


   

2,230
   


   


   


   

0%
   


   


   


   


               

Operational EBITA2
   


   


   


   

584
   


   


   


   

664
   


   


   


   

-12%
   


   


   


   

-10%3
   


   


   


   

3,005
   


   


   


   

2,817
   


   


   


   

+7%
   


   


   


   

+5%3
               

as % of operational revenues
   


   


   


   

7.9%
   


   


   


   

9.7%
   


   


   


   

-1.8pts
   


   


   


   


   


   


   


   

10.9%
   


   


   


   

11.2%
   


   


   


   

-0.3pts
   


   


   


   


               

Income from continuing operations, net of tax
   


   


   


   

210
   


   


   


   

214
   


   


   


   

-2%
   


   


   


   


   


   


   


   

1,575
   


   


   


   

1,519
   


   


   


   

4%
   


   


   


   


               

Net income attributable to ABB
   


   


   


   

317
   


   


   


   

393
   


   


   


   

-19%
   


   


   


   


   


   


   


   

2,173
   


   


   


   

2,213
   


   


   


   

-2%
   


   


   


   


               

Basic EPS ($)
   


   


   


   

0.15
   


   


   


   

0.18
   


   


   


   

-19%4
   


   


   


   


   


   


   


   

1.02
   


   


   


   

1.04
   


   


   


   

-2%4
   


   


   


   


               

Operational EPS ($)2
   


   


   


   

0.30
   


   


   


   

0.33
   


   


   


   

-9%4
   


   


   


   

-6%4
   


   


   


   

1.33
   


   


   


   

1.25
   


   


   


   

+7%4
   


   


   


   

+8%4
               

Cash flow from operating activities
   


   


   


   

1,867
   


   


   


   

1,869
   


   


   


   

0%
   


   


   


   


   


   


   


   

2,924
   


   


   


   

3,799
   


   


   


   

-23%
   


   


   


   


               

On December 17, 2018, ABB announced an agreed sale of its Power Grids division. Consequently, the results of the Power Grids business are presented as discontinued operations. The company’s results for all periods have been adjusted accordingly.

“In 2018, we brought the company back to growth and delivered solid order and revenue growth. We drove topline momentum with our leading Robotics and Motion offering and played a strong role in the ongoing recovery of process industries with our industrial automation business and ABB Ability™ digital solutions. We will continue to drive the operational improvements in Electrification Products and our company overall”, said ABB CEO Ulrich Spiesshofer.

“At the end of 2018, we set the course for a new ABB as a pioneering technology leader in digital industries. We announced three transformational actions to focus our portfolio, simplify and fundamentally reset our business model as well as strengthen the leading business positions of our company. Our confidence in ABB’s future is reflected in the proposed 10th consecutive dividend increase to CHF 0.80.”

Short-term outlook

Macroeconomic signs are mixed in Europe and trending positively in the United States, with growth expected to continue in China. The overall global market is growing, with rising geopolitical uncertainties in various parts of the world. Oil prices and foreign exchange translation effects are expected to continue to influence the company’s results.

Full-year 2018 Group results

ABB delivered strong order and revenue performance in 2018. The group’s digital solutions offering, ABB Ability™, continued to build its leading market position. Total orders were 8 percent higher (14 percent in US dollars) with strong positive contributions from Robotics and Motion and Industrial Automation as well as solid performance from Electrification Products. Total orders exhibited similar growth trends across all regions. Base orders (classified as orders below $15 million) improved 6 percent (14 percent in US dollars) in 2018, rising in all divisions and regions. Large orders increased 45 percent (20 percent in US dollars), albeit off a low comparative base, and represented 7 percent of total orders, compared to 6 percent in the prior year. Service orders were 7 percent higher (12 percent in US dollars) and now stand at 19 percent of total orders.

Revenues improved 4 percent (10 percent in US dollars) to $27,662 million. Revenues grew across all divisions, with strong performance from Robotics and Motion and robust contributions from Electrification Products and Industrial Automation. Service revenues were up 7 percent (11 percent in US dollars) to 19 percent of group revenues. The book-to-bill ratio stood at 1.03x in 2018 compared with 0.99x in the previous year.

ABB continued to shift its center of gravity, de-risking the portfolio and improving organic growth prospects. The exit from EPC (Engineering, Procurement and Construction) activities progressed as ABB transferred its turnkey AC Substation business to Linxon, a new joint-venture with SNC Lavalin. ABB continues to unwind the remaining legacy EPC contracts, which impacted results reported through the period for the non-core business unit in Corporate and other. ABB strengthened the competitiveness of its Electrification Products division through the acquisition of GE Industrial Solutions (“GEIS”) on June 30, 2018. Integration efforts are well underway. GEIS’ performance in the second half of 2018 has been in line with managements expectations.

ABB announced fundamental actions to focus, simplify and lead in digital industries on December 17, 2018. The group’s actions included the divestment of the Power Grids business. As a consequence of the announced sale, the results of the Power Grids business are now presented as discontinued operations and the group has reflected stranded costs in its operational EBITA result for both the 2017 and 2018 periods, in line with the guidance provided as part of the announcement on December 17, 2018. Stranded costs are services provided by the group to Power Grids that do not qualify to be reported as discontinued operations. These services include real estate, IT, and other shared corporate services. The company expects the vast majority of these costs to either be transferred to Power Grids or eliminated by the closing of the transaction, which is anticipated in the first half of 2020.

The company’s operational EBITA in 2018 reached $3,005 million, an increase of 7 percent in US dollars (5 percent in local currencies), including stranded costs of $297 million. The operational EBITA margin was 10.9%, including 110 basis points related to stranded costs as well as an 100 basis point charge related to legacy non-core business activities, and 40 basis points dilution from GEIS.

Net income attributable to ABB of $2,173 million was 2 percent lower compared to 2017. Basic EPS was 2 percent lower at $1.02. Operational EPS2 was $1.33, up 8 percent in constant currency2.

Cash flow from operating activities5 of $2,924 million for the full year was 23 percent lower year on year. This is mainly due to lower cash from discontinued operations as well as less favorable timing of tax payments. Net working capital of $2,584 million stood at 9 percent of revenues at the end of 2018, compared to 10 percent at the end of the prior year period. Capital expenditures for the group were $772 million during the year, at the same level as in 2017. Adjusted free cash flow2 of $2,024 million was 31 percent below the prior year.

Dividend

ABB’s board has proposed an ordinary dividend of 0.80 Swiss francs per share for 2018, subject to shareholder approval at the company’s annual general meeting on May 2, 2019. The proposal is in line with ABB’s dividend policy to pay a rising, sustainable dividend over time. The ex-dividend and payout dates in Switzerland are expected to be in May 2019. Further information will be available on ABB’s website.

Q4 2018 Group results

Orders

Total orders rose 7 percent (10 percent in US dollars), up in all divisions and regions compared to a year ago. Base orders increased 5 percent (11 percent in US dollars), higher in all divisions during the quarter. Large orders represented 5 percent of total orders, steady compared to the prior year period. The order backlog rose 6 percent (5 percent in US dollars) compared to a year ago, improving in all divisions, to end the year at $13.1 billion.

Service orders were up 5 percent (7 percent in US dollars). Service orders represent 20 percent of total orders, compared to 21 percent in the prior year period.

Changes in the business portfolio, including the acquisition of GEIS resulted in a net positive impact of 8 percent on total reported orders. Foreign exchange translation effects had a 5 percent negative impact on reported orders.

Market overview

ABB saw positive order trends across its three regions in the quarter:

    Total orders from Europe rose 4 percent (5 percent in US dollars), with positive contributions from Italy, Sweden, the Netherlands and France outpacing lower contributions from Germany, Norway and Spain. Base orders rose 2 percent (2 percent in US dollars).
    Total orders from the Americas increased 11 percent (32 percent in US dollars). Orders from the United States rose 8 percent (38 percent in US dollars) and also improved in Mexico and Brazil. Base orders from the Americas increased 13 percent (37 percent in US dollars).
    In Asia, Middle East and Africa (AMEA), total orders grew 7 percent (steady in US dollars), supported by growth in China, India and Japan. In China, demand was softer in select end-markets, but remained positive, with total orders rising 6 percent (6 percent in US dollars). Base orders for AMEA were steady (1 percent lower in US dollars).

Demand was supportive across the majority of ABB’s key customer segments:

    ABB saw healthy demand from process industries, including oil and gas, mining, and pulp and paper, with customers continuing to invest in automation and digital solutions.
    Demand across discrete industries remained solid, including continued growth from the food & beverage sector. Demand was strong in the automotive market, with customers seeking robotics solutions for both ICE and EV assembly lines, more than offsetting softer investments from customers in the consumer electronics sector.
    Transport and infrastructure demand was healthy. Demand from construction and buildings related customers was robust. Data center growth continued with customer demand focused on combined automation and distribution solutions. ABB saw further activity in cruise ships and from rail customers.

Revenues

Revenues improved 5 percent to $7,395 million (9 percent in US dollars), with strong growth in Robotics and Motion, robust performance from Electrification Products and a steady result from Industrial Automation. Service revenues were up 4 percent (8 percent in US dollars), enhanced by ABB’s leading digital portfolio, ABB Ability™ solutions. Services represented 20 percent of total revenues, steady versus the prior year period.

Business portfolio changes, including the acquisition of GEIS, contributed a net positive of 8 percent to reported revenues. Changes in exchange rates resulted in a negative translation impact on reported revenues of 4 percent.

The book-to-bill ratio stood at 0.94x in the quarter compared with 0.93x in the previous year’s period.

Operational EBITA

Operational EBITA of $584 million in the fourth quarter was 12 percent lower in US dollars (10 percent in local currencies) compared to the prior year period. The operational EBITA margin of 7.9 percent, included $72 million, or a 100-basis point impact from stranded costs. As well, operational EBITA reflects 260 basis points impact from charges for legacy non-core activities, mainly related to substations, and a 40 basis points impact due to the acquisition of GEIS.

Net income, basic and operational earnings per share

Net income was $317 million, 19 percent lower year on year. Basic earnings per share of $0.15 also moved the same amount in percentage terms. Operational earnings per share of $0.30 was 9 percent lower, and 6 percent in constant currency4.

Cash flow from operating activities

The group delivered solid cash flow from operating activities of $1,867 million, steady compared to the similarly strong cash flow delivered in the prior year period. Continued focus on working capital had a positive impact compared to the same period last year, offset by less favorable timing of tax payments and a lower contribution from discontinued operations.

Q4 divisional performance

($ in millions, unless otherwise indicated)
   


   


   


   

Orders
   


   


   


   

CHANGE
   


   


   


   

3rd party base orders
   


   


   


   

CHANGE
   


   


   


   

Revenues
   


   


   


   

CHANGE
   


   


   


   

Op EBITA %
   


   


   


   

CHANGE
   


   


   


   


   


   


   


   


   

US$
   


   


   


   

Compa-

rable

1
   


   


   


   


   


   


   

US$
   


   


   


   

Compa-

rable1
   


   


   


   


   


   


   

US$
   


   


   


   

Compa-

rable1
   


   


   


   


   


   


               

Electrification Products
   


   


   


   

3,139
   


   


   


   

+23%
   


   


   


   

+2%
   


   


   


   

3,032
   


   


   


   

+27%
   


   


   


   

+3%
   


   


   


   

3,320
   


   


   


   

+23%
   


   


   


   

+3%
   


   


   


   

11.7%
   


   


   


   

-3.0pts
               

Industrial Automation
   


   


   


   

1,866
   


   


   


   

+4%
   


   


   


   

+8%
   


   


   


   

1,639
   


   


   


   

+0%
   


   


   


   

+4%
   


   


   


   

1,938
   


   


   


   

-4%
   


   


   


   

+0%
   


   


   


   

12.9%
   


   


   


   

-2.0pts
               

Robotics and Motion
   


   


   


   

2,175
   


   


   


   

+7%
   


   


   


   

+11%
   


   


   


   

1,872
   


   


   


   

+2%
   


   


   


   

+6%
   


   


   


   

2,341
   


   


   


   

+7%
   


   


   


   

+11%
   


   


   


   

15.0%
   


   


   


   

+1.2pts
               

Corporate & Other
   


   


   


   

(195)
   


   


   


   


   


   


   


   


   


   


   


   

11
   


   


   


   


   


   


   


   


   


   


   


   

(204)
   


   


   


   


   


   


   


   


   


   


   


   


   


   


   


   


               

ABB Group
   


   


   


   

6,985
   


   


   


   

+10%
   


   


   


   

+7%
   


   


   


   

6,554
   


   


   


   

+11%
   


   


   


   

+5%
   


   


   


   

7,395
   


   


   


   

+9%
   


   


   


   

+5%
   


   


   


   

7.9%
   


   


   


   

-1.8pts
               

Effective January 1, 2018, management responsibility and oversight of certain remaining engineering, procurement and construction (EPC) business, previously included in the Industrial Automation and Robotics and Motion operating segments and the former Power Grids business, were transferred to a new non-core operating business within Corporate and Other. The Power Grids division was moved from continuing to discontinued operations. All previously reported amounts have been adjusted consistent with these portfolio changes.

Electrification Products

Total orders rose 2 percent (23 percent in US dollars) and third-party base orders increased 3 percent (27 percent in US dollars). Good demand for products was dampened by a lower order volume for systems. Revenues improved 3 percent (23 percent in US dollars), driven by growth in our short-cycle businesses. Operational EBITA margin was 300 basis points lower year-on-year at 11.7 percent. The integration of GEIS diluted margins by 210 basis points, in line with expectations. Excluding GEIS, operating margins were impacted by negative contractual charges amounting to approximately 90 basis points, which outweighed positive mix, cost savings and pricing actions during the quarter.

Industrial Automation

Compared to the prior year period, total orders improved 8 percent (4 percent in US dollars), boosted by selective large order activity, while third-party base orders were up by 4 percent (steady in US dollars). Order activity for cruise ships and in process industries including mining and pulp and paper was strong during the quarter. Revenues were steady (4 percent lower in US dollars). The operational EBITA margin of 12.9 percent reflects change in the business mix as well as a one-time charge due to payment default by a customer that impacted the divisional margin by approximately 80 basis points.

Robotics and Motion

The division saw continued order momentum with total orders up 11 percent (7 percent in US dollars) and third-party base orders up 6 percent (2 percent in US dollars). Order growth was achieved across all regions, supported by large orders from automotive and rail customers and continued demand from process industries. Revenues increased 11 percent (7 percent in US dollars). Operational EBITA margin at 15.0 percent expanded 120 basis points year-on-year, driven by positive volumes and continued cost management.

2018 Highlights

During 2018, ABB recorded strong order momentum across all divisions and regions. The company’s pioneering technology leadership in digital industries advanced, with ABB Ability™ recognized by industry analysts as #1 globally in Distributed Control Systems and Enterprise Asset Management software. ABB Ability™ was launched in 2017 and offers more than 220 digital solutions, which enable enterprises to increase productivity and safety at lower costs. For example, ABB and Helsinki City Transport held at the end of 2018 a groundbreaking trial of a remotely operated passenger ferry, which was retrofitted with ABB’s new dynamic positioning system, ABB Ability™ Marine Pilot Control, and steered from a control center in Helsinki.

ABB continues to invest in its future. During 2018, the group announced a €100 million investment to build a cutting-edge R&D campus in Austria, and a $150 million investment to build a state-of-the-art flexible robotics manufacturing site, also including an Artificial Intelligence center of excellence, in Shanghai, China.

The acquisition of GEIS completed on June 30, 2018, strengthened the competitiveness of Electrification Products, particularly in the attractive North American market. ABB targets $200 million per annum synergies from GEIS by 2022.

On December 17, 2018, ABB announced the agreed sale of its Power Grids business, expanding its existing partnership with Hitachi. Alongside, ABB announced its intention to simplify the business structure and to shape four new leading businesses: Electrification, Industrial Automation, Motion, and Robotics and Discrete Automation. ABB expects a total of $500 million annual run-rate cost reductions across the group over the medium-term. Approximately $500 million of related non-operational restructuring and implementation charges are expected to be taken through 2020. ABB is targeting a medium-term group operational EBITA margin target of 13-16 percent. New margin targets for the four businesses are available today at ABB̕s strategy update (further details can be found under www.abb.com).

Management changes

ABB announced today the appointment of Sylvia Hill (59) as Chief Human Resources Officer and member of the Executive Committee, effective June 1, 2019. She succeeds Jean-Christophe Deslarzes (55), who has decided to step down to pursue a non-executive career. Sylvia Hill joined ABB’s Human Resources (HR) team in 1993 and has held positions of increasing responsibility within the HR function, including Head of HR for the Robotics and Motion division, country HR manager for France and the Czech Republic, and Head of HR of the Mediterranean Region. Currently, she is Group Function Head of Global HR Services and HR Transformation.

“Sylvia brings a wealth of experience in HR, change management and talent management to the role,” said ABB CEO Ulrich Spiesshofer. “I am delighted to welcome Sylvia to the Executive Committee. I would like to thank JC Deslarzes for his outstanding contribution as Chief Human Resources Officer over the past five years. Under his leadership, ABB has developed a world-class talent management and people development strategy for the digital era, and significantly improved its attractiveness to young talent.”

Deslarzes will continue to support ABB’s transformation until beginning of 2020 and report directly to CEO Ulrich Spiesshofer. He will remain non-executive Chairman of ABB India.

In December 2018, ABB announced the appointment of Morten Wierod, currently Managing Director Business Unit Drives, as business leader for the newly created Motion business. He will become a member of the Executive Committee effective April 1, 2019.

Short- and long-term outlook

Macroeconomic signs are mixed in Europe and are trending positively in the United States, with growth expected to continue in China. The overall global market is growing, with rising geopolitical uncertainties in various parts of the world. Oil prices and foreign exchange translation effects are expected to continue to influence the company’s results.

ABB’s businesses are either the global #1 or #2 player in attractive markets with strong secular drivers. The company’s addressable market for its new businesses Electrification, Industrial Automation, Motion, and Robotics and Discrete Automation is expected to grow long term by 3.5-4 percent per annum.

More information

The Q4 2018 results press release and financial information documents are available on the ABB News Center at www.abb.com/news and on the Investor Relations homepage at www.abb.com/investorrelations.

ABB will host a press conference today starting at 9:00 a.m. Central European Time (CET) (8:00 a.m. BST, 3:00 a.m. EST). The event will be accessible by webcast on https://new.abb.com/media/media-event---strategy-update-2019.

ABB will host an analyst and investor conference today starting at 12:00 p.m. CET (11:00 a.m. GMT, 6:00 a.m. EST). The event will be webcast for approximately 90 minutes, covering Q4 and FY18 results and the group’s Strategy update presentation. The webcast and related materials will be accessible from 11:00 a.m. CET at: go.abb/strategy-update-2019

A recorded session will be available as a webcast following the end of the conference call.

ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in power grids, electrification products, industrial automation and robotics and motion, serving customers in utilities, industry and transport & infrastructure globally. Continuing a history of innovation spanning more than 130 years, ABB today is writing the future of industrial digitalization with two clear value propositions: bringing electricity from any power plant to any plug and automating industries from natural resources to finished products. As title partner in ABB Formula E, the fully electric international FIA motorsport class, ABB is pushing the boundaries of e-mobility to contribute to a sustainable future. ABB operates in more than 100 countries with about 147,000 employees. www.abb.com


   


   


   


   


   

INVESTOR CALENDAR 2019

Annual General Meeting
   


   


   


   

May 2, 2019

First quarter 2019 results
   


   


   


   

May 2, 2019

Second quarter 2019 results
   


   


   


   

July 25, 2019

Third quarter 2019 results
   


   


   


   

October 23, 2019

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, including those in the sections of this release titled “Short-term outlook”, “Full-year 2018 Group Results”, “2018 Highlights” and “Short- and long-term outlook”. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, 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 “expects,” “believes,” “estimates,” “targets,” “intends”, “aims” or similar expressions. However, there are many 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, 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 U.S. 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.

Zurich, February 28, 2019

Ulrich Spiesshofer, CEO

1 Growth rates for orders, third-party base orders and revenues are on a comparable basis (local currency adjusted for acquisitions and divestitures). US$ growth rates are presented in Key Figures table.
2 For non-GAAP measures, see the “Supplemental Financial Information” attachment to the press release.
3Constant currency (not adjusted for portfolio changes).
4EPS growth rates are computed using unrounded amounts. Comparable operational earnings per share is in constant currency (2014 exchange rates not adjusted for changes in the business portfolio).
5 Cash flow from operating activities is presented in the Consolidated Statement of Cashflows and includes both cash flows from continuing and discontinued operations.

Contacts

For more information, please contact:
ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
Media Relations
Phone: +41 43 317 71 11
E-mail: media.relations@ch.abb.com
or
Investor Relations
Phone: +41 43 317 71 11
E-mail: investor.relations@ch.abb.com


Permalink : https://www.aetoswire.com/news/abb-solid-growth/en

ABB Strategy Update: Shaping a Leader Focused in Digital Industries

Global software partnership with Dassault Systèmes and targets for New ABB’s four leading businesses announced

ZURICH-Thursday 28 February 2019 [ AETOS Wire ]

    New ABB: focus, simplify, lead
    Focused portfolio: Divestment of Power Grids to Hitachi well on track
    Simplified structure: New operating model “ABB-OS™” for enhanced customer focus, agility
    and profitability; ~$500 million annual savings
    Four new leading businesses, #1 or #2 in their respective markets, effective April 1, 2019 with
    new medium-term business operational EBITA margin target corridors of:
        Electrification: 15-19 percent
        Industrial Automation: 12-16 percent
        Motion: 14-18 percent
        Robotics & Discrete Automation: 13-17 percent
    Medium-term group targets confirmed:
        3-6 percent annual comparable revenue growth
        Operational EBITA margin of 13-16 percent
        Return on Capital Employed (ROCE) of 15-20 percent
        Cash conversion to net income of approximately 100 percent
        Basic EPS growth above revenue growth
    ABB and Dassault Systèmes enter global software partnership for digital industries



(BUSINESS WIRE)-- On December 17, 2018, ABB announced fundamental actions to focus, simplify and lead in digital industries for enhanced customer value and shareholder returns. These actions are: focusing the portfolio on digital industries through the divestment of the Power Grids division, the simplification of the business model through the discontinuation of the legacy matrix structure, as well as the shaping of four leading businesses aligned with customer patterns.

At its strategy update to media and investors today, ABB presents details on and a roadmap for the future of its four new businesses, their leadership and customer value proposition for digital industries. As part of this, ABB is publishing the profit margin target corridors of the businesses.

ABB is announcing a new global software partnership with Dassault Systèmes, a unique end-to-end digital value proposition in combination with its leading digital solutions offering ABB Ability™ to support the planning, building and operations of industrial customers’ operations.

“The new ABB will be a pioneering technology leader in digital industries, operating in attractive markets, with a unique offering of innovative solutions in electrification, automation, robotization and digitalization. We are shaping four customer-focused, entrepreneurial businesses that are already the global #1 or #2 player in their respective markets today. With ABB Ability™, our digital solutions offering, we will continue to drive profitable growth, whilst managing the transformation of our ABB into a more agile, streamlined and customer-focused group. The partnership with Dassault Systèmes will further strengthen our position as leader in digital industries and provide our customers an end-to-end offering of advanced open digital solutions, enhancing their competitiveness and innovation patterns,” said ABB CEO, Ulrich Spiesshofer.

“This path will position us well for the future and will materially enhance value for all stakeholders. I would like to thank our employees worldwide for their outstanding commitment shown during this period of change as we look forward to the next chapter in this company’s proud history spanning more than 130 years,” added Spiesshofer.

Timo Ihamuotila, CFO of ABB: “Our healthy improved order backlog at the end of the year makes us confident about our new set up. We expect solid operating cash generation of the new ABB, positioning us well to continue investing in R&D and sales in a disciplined way. At the same time, we will relentlessly look for efficiency improvement potential to lower our cost base. We expect to deliver $500 million in net cost savings from our simplification program in the medium term.”

The new ABB: lower risk, less volatile, more growth

The new ABB will have in total $29 billion in annualized revenues and around 110,000 employees. Its four customer-focused, entrepreneurial businesses are either the global #1 or #2 player in their respective markets, influencing the future of how we power, produce, work, live and move. ABB’s addressable market is expected to grow by 3.5-4 percent per annum, adding $140 billion in size to reach $550 billion by 2025. Driving this demand will be growing influence of electric mobility, data centers and robotics.

Transformational milestone: Global Partnership with Dassault Systèmes

Following on from its proven track record of digital partnerships with Microsoft, HPE and IBM, ABB has today announced a wide spanning global partnership with Dassault Systèmes to offer customers in digital industries a unique software solutions portfolio ranging from product life cycle management to asset health solutions. The two companies will provide customers an end-to-end offering of advanced open digital solutions, enhancing competitiveness of industrial companies, while increasing flexibility, speed and productivity of their products' lifecycles, manufacturing and operations.

The partnership will combine the strengths of ABB Ability™ digital solutions and Dassault Systèmes' 3DEXPERIENCE platform, and build on both companies’ strong installed base, deep domain expertise and global customer access. ABB has already adopted the 3DEXPERIENCE platform to model and simulate its solutions before delivering them to its customers. With this partnership, ABB will develop and provide customers with advanced digital twins, enabling customers to run ABB’s solutions and their operations with improved overall efficiency, flexibility and sustainability.

The companies will, in a staged approach, focus on smart factories and robotics, process industry automation, as well as electrification solutions for smart buildings. The first joint solutions will be showcased at the upcoming industrial Hannover Messe trade fair in Germany, April 1-5, 2019.

Launched two years ago, ABB Ability™ represents the globally leading digital offering in Industry 4.0, from device to edge to cloud. Some 45 percent of ABB's new orders are generated from digital solutions, while the order pipeline for ABB Ability™ has increased by more than 20 percent since October 2018.

The platform of ABB Ability™ runs as an open architecture and cloud infrastructure, which allows customers to use other software from partners, suppliers and developers. ABB offers approximately 180 digital solutions, which enable enterprises to increase productivity, efficiency and safety at lower costs.

Simplification of business model and structure

During the first quarter of 2019, ABB is preparing for the new business structure and a new operating system – “ABB-OS™” – to be implemented in stages by mid-2020. ABB will discontinue the legacy matrix structure, thereby empowering its four leading businesses to serve customers even better, while further sharpening responsibilities and increasing efficiency.

ABB’s new organization will provide each business with full entrepreneurial ownership of operations, functions, R&D and territories. The businesses will be the single interface to customers, maximizing proximity and speed. The corporate center will be further streamlined, while existing country and regional structures including regional Executive Committee roles will be discontinued after the closing of the Power Grids transaction. Existing resources from country level will strengthen the new businesses.

ABB expects a total of ~$500 million annual run-rate cost reductions across the group with $150-200 million run-rate targeted during 2019 and the full run-rate targeted during 2021. Clear actions to deliver the ~$500 million have been identified, with approximately $300 million of savings to be realized from the businesses, for example through fewer P&Ls and management layers and optimizing ABB̕s manufacturing footprint. Approximately $200 million savings are planned to come from Group functions and a leaner corporate center.

Four new leading businesses

The four new businesses are: Electrification, Industrial Automation, Motion and Robotics & Discrete Automation. ABB will report according to the new business structure as of April 1, 2019.

Electrification – writing the future of safe, smart and sustainable electrification

    FY 2018 ~$13 billion revenues
    FY 2018 ~13% operational EBITA margin1
    Medium-term operational EBITA margin target corridor of 15-19%
    $160 billion addressable market, forecast to grow at 3% p.a.
    Above market revenue growth and significant margin growth potential

The Electrification business is the Global #2 providing one of the largest and most comprehensive portfolios with a complete offering from source to socket. The business delivers clear customer benefits including speed and uptime, contributing to significant investment payback.

It provides a complete portfolio of innovative products, digital solutions and services with some 1.7 million products shipped every day. Products range from critical power and building products to electric vehicle charging infrastructure. The business has 55,000 employees and will be led by Tarak Mehta.

The business expects to deliver above market growth through a combination of geographic growth in the US and China, focus on higher growth segments such as data centers, smart buildings and services for e-Mobility, along with portfolio benefits with modular, scalable, pre-configured solutions. Margin improvement will be delivered through volume leverage, focus on higher margin segments, the turnaround of GEIS and operational improvements.

ABB successfully launched in the USA last year its Terra HP 350kW electric vehicle charger, which recharges a vehicle for 200 kilometers in just eight minutes.

“There are good opportunities for Electrification as urban populations grow and the world forges ahead to create a lower-carbon future. We are expanding our operations in rapidly digitalizing markets, offering modular, scalable, preconfigured solutions with ABB Ability™-enabled products and services to ensure our customers realize safer, smarter and sustainable operations,” said Tarak Mehta, President of the Electrification business.

Industrial Automation – writing the future of safe and smart operations

    FY 2018 ~$6.5 billion revenues
    FY 2018 ~14% operational EBITA margin
    Medium-term operational EBITA margin target corridor of 12-16%
    $90 billion addressable market, forecast to grow at 3% p.a.
    Above market growth and good margin profitability with low capital requirement

The newly-shaped Industrial Automation business, without B&R, is the Global #2 focused on writing the future of safe and smart operations. Industrial Automation will address customer needs with a unique portfolio of integrated solutions based on its leading technologies, including its #1 DCS (distributed control systems), its deep industry expertise, the largest installed base with over 35 million connected devices and vast global footprint.

It is focused on providing integrated automation solutions across process, electrical and motion, measurement and analytics, as well as marine and turbo charging solutions for customers in the Oil & Gas, Chemicals, Utilities, Mining & Minerals, Pulp & Paper, and Marine & Ports industries. The business has 21,000 employees and will be led by Peter Terwiesch.

The business expects to drive above market growth through industry-specific, differentiated automation solutions across process, electrical and motion that build on its leading DCS and comprehensive ABB offering, as well as tailored growth initiatives for key verticals. It expects to accelerate revenues from ABB Ability™ solutions and new service business models leveraging its unique installed base and unrivalled service footprint to support customer during their assets’ lifecycle.

“With our deep industry knowledge and automation expertise, we understand the needs of our customers and enable them to lead through safer, more productive and energy efficient operations. Moreover, with our portfolio of integrated automation solutions, combined with our offering of ABB Ability™ digital applications, lifecycle services and artificial intelligence, we are driving the evolution towards more autonomous operations,” said Peter Terwiesch, President of the Industrial Automation business.

Motion – writing the future of smart motion

    FY 2018 ~$6.5 billion revenues
    FY 2018 ~16% operational EBITA margin
    Medium-term operational EBITA margin target corridor of 14-18%
    $80 billion addressable market, forecast to grow at 3% p.a.
    Above market growth and continued strong profitability

ABB’s newly created Motion business is the Global #1 in motion industries is set to capture the benefits of the world going electric. Motion will build on its pioneering technology leadership, its domain expertise and its global scale and coverage. Already today, a third of the world’s electricity is converted by electrical motors into motion, driven by a growing population, urbanization and digitalization. ABB expects the number of electric motors to double by 2040, which is the equivalent of the energy consumed by the whole of China annually.

Motion provides customers with a comprehensive range-energy efficient, reliable and safe electrical motors, generators, drives and services. Its ABB Ability™ Digital Powertrain solution sets the standards for digitalization in motion industries. The business has 20,000 employees and will be led by Morten Wierod, who will also become a member of the Executive Committee, effective April 1, 2019.

The business expects to deliver above market growth by building on its leading local market positions in motors and drives. It will grow by dedicated geographic initiatives, its segment specific portfolio and using ABB Ability™ services to deliver the future of smart motion. Motion’s ability to sustain and improve its EBITA margin, against a backdrop of cost inflationary and pricing pressure, will come from being able to scale benefits, from ABB Ability™, from its innovation along with the simplified operating system.

“As the world goes electric, Motion has an excellent growth outlook. We will bring even more value to our customers and partners with ABB Ability™-based offering and services,” said Morten Wierod, President of the Motion business.

Robotics & Discrete Automation – writing the future of flexible manufacturing and smart machines

    FY 2018 ~$3.6 billion revenues
    FY 2018 ~15% operational EBITA margin
    Medium-term operational EBITA margin target corridor of 13-17%
    $80 billion addressable market, forecast to grow at 6% p.a.
    Strong top-line and margin growth potential

The Robotics & Discrete Automation business will combine ABB’s machine and factory automation Business (mainly B&R) with the Group’s superior robotics platform. It will be uniquely positioned to capture the opportunities associated with the “Factory of the Future” by writing the future of flexible manufacturing and smart machinery.

It provides a unique offering for flexible automation, combining control, motion, robotics, software and services – providing integrated solutions from machine to factory level. The business, which is already number two globally by size and number one by growth, has 11,000 employees and will be led by Sami Atiya.

The business expects to deliver above market growth driven through the portfolio and geographical expansion, driving synergies from unique portfolio and expansion in factory automation, including a greater role for ABB Ability™, artificial intelligence and partnering with Dassault Systèmes. Margin benefits will come from continued growth, scale benefits and performance initiatives whilst continuing to fund investments for future growth.

“In combining B&R’s machine and factory automation business with our superior Robotics solutions, we are driving an unmatched, comprehensive offering to help our customers create the flexible Factory of the Future,” said Sami Atiya, President of the Robotics & Discrete Automation business. “Our unique product portfolio, deep application expertise and advanced engineering and simulation tools, including ABB Ability™, ensure we help our customers improve quality and increase productivity and manufacturing flexibility, while maximizing uptime – all in a faster time-to-market solution.”

Value Creation in the new ABB

ABB will demonstrate improved commercial quality of business, enhanced exposure to faster growing markets, with a greater emphasis on high value-add solutions, less risk and large order volatility and more recurrent revenues through digital solutions, software and services.

ABB’s investment proposition is reflected in a new medium-term group target framework for the Group:

    3-6 percent annual comparable revenue growth
    Operational EBITA margin of 13-16 percent
    Return on Capital Employed (ROCE) of 15-20 percent
    Cash conversion to net income of approximately 100 percent
    Basic EPS growth above revenue growth

ABB’s sustained capital allocation priorities are unchanged:

    Fund organic growth in R&D and digital
    Rising sustainable dividend
    Value-creating acquisitions
    Returning additional cash to shareholders

The divestment of an 80.1% shareholding in Power Grids to Hitachi for an enterprise value of $11 billion is well on track. Following completion of the transaction in the first half of 2020, ABB intends to return 100 percent of the net cash proceeds of $7.6-7.8 billion to shareholders in an expeditious and efficient manner and execute a policy of a rising sustainable dividend. ABB intends to maintain the level of dividend per share post close and aims to maintain its “single A” credit rating long term.

More information

The strategy update results press release and financial information documents are available on the ABB News Center at www.abb.com/news and on the Investor Relations homepage at www.abb.com/investorrelations.

ABB will host a press conference today starting at 09:00 a.m. Central European Time (CET) (08:00 a.m. BST, 03:00 a.m. EST). The event will be accessible by webcast on https://new.abb.com/media/media-event---strategy-update-2019.

ABB will host an analyst and investor conference today starting at 12:00 p.m. CET (11:00 a.m. GMT, 6:00 a.m. EST). The event will be webcast for approximately 90 minutes, covering Q4 and FY18 results and the group’s Strategy update presentation. The webcast and related materials will be accessible from 11:00 a.m. CET at: https://new.abb.com/investorrelations/strategy/strategy-update-2019

A recorded session will be available as a webcast following the end of the conference call.

ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in power grids, electrification products, industrial automation and robotics and motion, serving customers in utilities, industry and transport & infrastructure globally. Continuing a history of innovation spanning more than 130 years, ABB today is writing the future of industrial digitalization with two clear value propositions: bringing electricity from any power plant to any plug and automating industries from natural resources to finished products. As title partner in ABB Formula E, the fully electric international FIA motorsport class, ABB is pushing the boundaries of e-mobility to contribute to a sustainable future. ABB operates in more than 100 countries with about 147,000 employees. www.abb.com

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, 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 “expects,” “believes,” “estimates,” “targets,” “intends”, “aims” or similar expressions. However, there are many 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, 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 U.S. 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.

Zurich, February 28, 2019

Ulrich Spiesshofer, CEO

1 Electrification result adjusted to include GEIS on an annualized basis, based on H2 2018 contribution

Contacts

ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland

Media Relations
Phone: +41 43 317 71 11
E-mail: media.relations@ch.abb.com

Investor Relations
Phone: +41 43 317 71 11
E-mail: investor.relations@ch.abb.com

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