ABB CEO says there is still room to improve Power Grids business
ABB has announced an increase in orders to its Power Grids business, while CEA Ulrich Spiesshofer says more work still needs to be done.
Rumours of future divestment have surrounded the controversial arm of ABB, which shareholders have repeatedly criticised as being unprofitable.
“We are transforming Power Grids, we are running on all cylinders to drive this transformation, we have really solid top-line growth, we are now at the margin corridor,”
“But we are just at the margin corridor, so there is more homework to be done.”, said ABB Chief Executive Officer Ulrich Spiesshofer.
Power Grids saw continued order momentum in the quarter, with total orders rising 11 percent (7 percent higher in US dollars) and third-party base orders increasing 13 percent (9 percent higher in US dollars). This increase in orders was in part supported by Power Up initiatives.
Orders included a large HVDC project, good orders from ABB Ability™ and Grid Automation as well as for services. The order backlog ended the third quarter 1 percent lower (5 percent lower in US dollars) year-on-year.
When asked if the increase in orders would mean the business would stay with ABB, Spiesshofer said: “When the time is right to talk more about it, we will talk about that.”