ABB increases profits and announces restructure
ABB saw an 11 per cent increase in net income, to $1.3bn for 1998. Notably, its power generation business tripled its contribution as all but one of its divisions posted higher earnings.
The results were announced at the same time as plans to simplify its structure by replacing four types of securities with a single share. The company said the introduction of one share with the same par value and voting rights, and the replacement of the three holding company boards with a single board marks the “final step” in fully integrating ABB.
It will also clear the way for an eventual full US stock exchange listing. ABB recently agreed to acquire the business of Energy Capital Partners, a US-based finance company serving the North American energy services market. At the beginning of 1999, ABB also completed its acquisition of Elsag Bailey.
In September last year the company realigned its segments and flattened its structure by dissolving its regional organizations.