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ZURICH (Reuters) – The Swiss engineering firm, which introduced higher sales and profitability targets on Tuesday, said it hoped it would take advantage of higher demand for rebound economies, as well as trends such as decarbonisation and staff cuts.
The manufacturer of industrial automation and factory robots said it now expects annual sales to rise from 4% to 7%, from 3% to 5% of its first target year.
In the new targets announced for its capital markets day on Tuesday, ABB said it also aims to increase its profitability.
From 2023 onwards, the company aims to achieve a profit margin, measured at an operating profit of at least 15% before interest, taxes and amortization (EBITA).
It previously had a margin of between 13% and 16%, and while the 2020 pandemic affected it, ABB had a margin of 11.1%.
ABB, whose competitors include Germany’s Siemens and France’s Schneider Electric (PA :), also said it would float the electric vehicle charging business for electric mobility, with an initial public offering scheduled for the first half of 2022 for Switzerland.
Reuters previously reported that the business, which is taking advantage of the global rise in battery-powered vehicles, could be worth about $ 3 billion.
CEO Bjorn Rosengren said ABB has made progress in implementing its plan to decentralize the company’s extensive operations, but the company can do even more.
“Over the past 24 months, ABB has made strong progress in implementing its decentralized organization and improving revenue quality,” Rosengren said in a statement. “But we’re not where we want to be yet.”
Former CEO Sandvik, who took over at ABB in March 2020, has reorganized ABB into 18 smaller, more autonomous business units and reduced the number of employees at the company’s headquarters.
Demand activity has remained strong this year as ABB expects a positive market boost in 2022, Rosengren added, although supply chain disruptions that have hit many other manufacturers would continue to be a problem.
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