NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

ABB revamps engineering business, to take Q4 charge

Published 2017-12-20, 01:11 a/m
© Reuters.  ABB revamps engineering business, to take Q4 charge
ABBN
-
ATRL
-

ZURICH, Dec 20 (Reuters) - Swiss technology group ABB ABBN.S will revamp its engineering, procurement and construction (EPC) business by spinning off and winding down some operations, triggering fourth-quarter charges, it said on Wednesday.

In the Power Grids division, ABB will form a joint venture with SNC-Lavalin SNC.TO for electrical substation EPC projects in which SNC-Lavalin will have the controlling interest.

In the Industrial Automation division, ABB's oil & gas EPC business will be transferred into a previously announced joint venture controlled by Saudi-based Arkad Engineering and Construction Ltd in a deal now expected to close this month.

In the Robotics and Motion division, ABB is winding down its turnkey full train retrofit business.

"The fourth quarter 2017 results of Power Grids and Robotics and Motion are each expected to be impacted by approximately $75 million on operational EBITA. The transfer of the turnkey oil & gas EPC business into the JV with Arkad is expected to result in a non-operational pre-tax charge to net income of approximately $75 million," it said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.