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ABB aims to accelerate growth to 2015

ABB says it is aiming to grow faster than its markets over the period 2011 to 2015, in an upgraded 5-year strategy.

According to ABB, it will be focusing on sectors where its combined power and automation portfolio offers competitive advantages.

It will also seek to increase market penetration in both emerging and mature economies, and become more responsive to changing customer needs and macroeconomic trends.

ABB also said tight execution on cost and productivity will further contribute to increasing profitability. It is currently aiming for annual productivity improvements equivalent to three to five percent of cost of sales.

ABB’s CEO Joe Hogan said the company has delivered strong results over the past five years, despite the historic economic downturn. It is seeing growth opportunities in trends like energy and resource efficiency, the need for power infrastructure and rapid growth in the emerging economies.

ABB expects to grow revenues from 2011 to 2015 at a compound annual growth rate (CAGR) of 7 to 10 percent organically, compared to estimated annual global GDP growth of 3 to 4 percent and overall market growth of 5 to 6 percent.

The company says it will build its strategy around five components.

increasing competitiveness by matching production to local market needs while driving productivity and quality improvements

capitalizing on macro trends such as emerging market growth, resource efficiency and climate change where markets are growing faster than global GDP

leveraging its leading market positions and technologies in core businesses like power grids and industrial automation to take market share

continuing its successful acquisition policy to accelerate growth in priority gap areas

exploiting disruptive opportunities, such as direct current (DC) technologies, to enable a wide range of energy efficient automation and power solutions.

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